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6140
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Location
Escondido, CA
US
Fantasy
726th
Edited Date/Time
12/28/2017 1:08pm
Germany is now worried that many investment dollars and jobs will shift to the US due to the new tax rate?
The new tax rate for corporations is now lower than Germany (where we were higher before) but more in
line with the rest of Europe. Per the Deutsche Handlsblatt,
"German economists are warning that the tax overhaul bill that now awaits the signature of President Donald Trump will mean that “significant amounts of new investment and jobs will shift from Europe to the United States,” according to the German business news publication Handelsblatt.
The United States has had a much higher tax rate for businesses than Germany and most of Europe. Under the tax reform bill, the corporate rate in the U.S. will fall to 21 percent, lower than the estimated 28.2 percent effective rate in Germany and close to the European average of 20.9 percent."
So do any of your companies plan on expanding investment directly because of the new tax plan
that they otherwise would not have?
TM
The new tax rate for corporations is now lower than Germany (where we were higher before) but more in
line with the rest of Europe. Per the Deutsche Handlsblatt,
"German economists are warning that the tax overhaul bill that now awaits the signature of President Donald Trump will mean that “significant amounts of new investment and jobs will shift from Europe to the United States,” according to the German business news publication Handelsblatt.
The United States has had a much higher tax rate for businesses than Germany and most of Europe. Under the tax reform bill, the corporate rate in the U.S. will fall to 21 percent, lower than the estimated 28.2 percent effective rate in Germany and close to the European average of 20.9 percent."
So do any of your companies plan on expanding investment directly because of the new tax plan
that they otherwise would not have?
TM
A good example is the bonus announcements from AT&T, BofA, etc. to occur before the first of the year. Many of the bonuses are similar to previous bonuses, but they are sped up to take advantage of the tax savings of making the expenditure at the current tax rate, rather than the lower tax rate they would be using by making these bonus payments early next year. It'll be interesting to see if some of these companies end up "deducting" these $1000 payments from their usual bonus payments that would normally take place in the spring after year end accounting is computed and bonus formulas finalized.
I think that overall, in some cases the lower tax rate could result in more spending for some companies or sectors. I also think that in some cases it will result in less, as it could encourage saving money rather than spending because there is less inventive to offset income with expenses due to the lower tax rate.
Time will obviously tell, and there are so many variables involved that even 20 years from now someone will probably be able to make a decent argument either way on this plan's effectiveness..........
That means business will have their headquarters and so their manufacturing in the location with the lowest taxes. It’s not hard to figure out.
The Shop
I think things need to be safe and we need to monitor that but with all the information exchange going on between employees over social media, I think it's a lot harder for companies to hide things like they used to. In the past, I made machines that automate processes that people did. However, it has been my experience that after implementing the machines the workers were not laid off but put to work at other tasks as it enabled the company to grow.
TM
TM
TM
Robots still need programming. Controllers, Maintenance technicians and continuous r&d.
I hope It works, I really do but I just feel like we are going in circles. If we were told we need to invade Iran tomorrow to stop the evil doers and the people of the country would rise up and accept democracy would you believe it? Or would you think we are just securing the oil fields for BP and Exxon and soon ISIS or a civil war would break out and things would be worse. Same with taxes, lower the job creators taxes and the trickle down will help everyone. Thing is, it never has after the short uptick. Corporations start buying back stock and only the large stockholders reap the benifits. Maybe this time is different, we can only hope.
People may not like Trumps personality but he is killin it in the bidness end of things.
100% write off next year for equipment, I will purchase about 200,000 of equipment in January just to upgrade to better stuff. And save about $40,000 in tax dollars.
The more stuff people buy the more reved up things get, the more cash people get the more they will spend.
My guess is next year will see import taxes into America raised, a border entry fee from Mexico and a federal tax increase on fuel (especially if they can bring gas prices down with the regs in that world being reduced now)
It’s gonna be a good year to be in business
Pit Row
So now this year, 1,000,000 less people getting food stamps, cut the federal payroll this year by $500 million, made it easier to do business, letting people keep more of their own money (it is the rich people’s money also), developers can actually develop stuff now, cut immigration effectively creating competition for jobs now that there is less people to compete for the jobs....... (the national debt has already slowed down in 1 year but they are crying about $1.5 trillion raise over 10 years with the tax reduction)
and they yell “HES ONLY HELPING THE RICH” these people look stupid now and they are about to look more stupid next year!
My daughters aren’t rich, they work for me and my son in law, with a stroke of a pen, they got a $5000 raise next year each
Yeah, I live in a rich area where a lot of people are going to be able to save more money than ever with this tax plan (that is take it out of circulation and bank it). However, If you listen to what the majority of economists are saying about this redistribution of wealth from the poor to the rich, it's hard to expect anything good coming out of this, TRILLION DOLLAR + deficit tax plan, for the rest of the country.
A border entry fee from Mexico? Mexico only? What...to pay for the wall? LOL, normally I'd say you're nuts; but in this day and age of an overtly racist president.....nothing would surprise me.
Trump was forced into some bankruptcies because the government changed the rules in the middle of the real estate game, I have friends that were forced into bankruptcy for the same reasons. Other bankruptcy he had were for taking over failed businesses trying to bring them around and it didn’t work. Some bankruptcy were for bad decisions, all of those things give him a pretty broad understanding of business and the power government wields to create and destroy in the business world.
Have you ever looked at the bankruptcies and business successes Bush had?
How about Obama’s business success?
I don’t vote, I made more money under Obama than I’ve ever made! Mainly because of all the free money that was funneled into the Auto industry.....my success was to the tune of the deficit going up $1 trillion a year tho! Since I don’t vote I just want to know what are the new rules this year, so I can do my best to live by the new rules. The new rules this year are a lot less than years past.
I know a lot of wealthy folks and many of the uber wealthy ones don't put their own money at risk.
Once people have a track record of making stellar profits other people beg for the privilege to ride
their coat tails on the next project. Is everyone perfect and never looses money? No. But also consider
many projects take years to go from inception to finish and economic environments change during
that time. Not every project will be a success.
Also, the projects have to be evaluated as individual projects not just "Trump" did this.
In contrast he did become a Billionaire along the way and made a lot of other people money too.
Yes many people lost money but they only put their money at risk because he was successful.
TM
TM
2) other reasons but I’m not going to go into it here.
"what are the new rules this year"
"Once people have a track record of making stellar profits other people beg for the privilege to ride
their coat tails on the next project."...........This is true. This IS NOT true about Trump! Around the world, people can't strip his name off their buildings quick enough. He's such a failure in business that no legit banks will give him a loan. LOL, Why do you think he has this noose tightening around his neck right now?
I believe if he were a legit billionaire he's too narcissistic to not show us his tax returns to prove it. There's a reason he's the first President in almost 50 years to not show us his finances....and none of us know what that reason is.........YET!
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