Apparently the American people are all suffering from dementia. With the recent passage of the ill-named Inflation Reduction Act, there is a provision to increase the corporate tax rate.
It was only six years ago that Americans elected Donald Trump. One of his promises was to reduce the corporate tax rate because of the staggering loss of American jobs due to the relocation of hundreds of factories relocating to China and other countries to get away from the high taxes imposed by The Obama administration. Now, with the help from the only two conservative Democrats in congress, we can return Americans to the same downward spiral that forced businesses to leave the last go-round. This high tax climate will ultimately have the same effect, and instead of reducing inflation, it will cause The Government to lose far more revenue from the business exodus, than could possibly be collected from those that remain in this country.
President Donald Trump was able to lower the corporate rates and convince many businesses to return to America, sparking growth, lower unemployment, and increasing tax revenue to The Federal balance sheet.
It doesn’t take a genius to figure out that with this Inflation Reduction Act, history will repeat itself. It costs a small fortune for a business to relocate, whether overseas, or to return back to America. I wonder what magic wand can be waived to make the businesses relocate back for a second time.
For those who may be mathematically challenged, that would be four times that businesses would go through the expense to relocate in just six years. I seriously doubt that any tax incentive could be strong enough to overcome those expenditures for any company.
The loss of American run businesses will be permanent for this go-round. So, Joe Biden’s dementia is contagious. Apparently Joe Manchin and Kirsten Sinema have it too, because without their vote, it would never have passed through reconciliation.