Have you ever considered the real costs when states compete against each other for a large corporate manufacturing facility or corporate headquarters? If no states compete the corporation has to pay their way at the normal rate that any other business would, but when they send it out to bid, so to speak, it’s like a procurement solicitation for a contract. The best terms, tax credits, improvements, regulation reduction that fits their total needs wins.
There might be one state that the corporation would never consider, but that state is used as a bargaining chip to get another state the corporation is interested in to capitulate and sweeten the deal. One member of our think tank sees how this might unfold in the future: “I do believe that conservative states will eventually force liberal states to start lowering taxes once enough business is lost.”
Back when we had this dialogue at our think tank, I noted: I think everyone is seeing what’s happening. I am glad to see Obamas Department of Commerce secretary, Penny Pritzker talked some sense into him, or maybe it was Oprah who talked to Michelle Obama, but he did mention in the State of Union that he was going to see that they lowered taxes for Corporations to get them to come back and re-shore their company factories here. The Obama Administration never lowered those corporate taxes, but I am sure Donald Trump’s Administration will.
Still, back when Obama was in office, I noted that lowering Federal Corporate Taxes won’t quite be enough, as we have a problem with unions, class action lawsuits, and duplicate and over regulation too. The funny thing is I could have personally fixed this whole thing in about 4-6 months, but I see the Obama Administration made all the wrong moves and blew through lots of money, our money.
When government wastes money people notice and it doesn’t make them too happy about taxes, when corporations see that the government wants to steal their efficiencies through taxation — after all the Six Sigma management initiatives and cost painstaking cost reductions and then the regulatory agencies use that money to come attack them or make laws which hurt them — they get upset and want to do something about it.
Today they hire lobbyists and lawyers to protect themselves, and often hire government insider lawyers to come work for them (revolving door), but can you blame them? Worse, the politicians seeing this use extortion tactics to get campaign contribution bribes. The whole system is broken and here we are.
Our think tanker replies; “Once this happens, the hearts of people will likely change, and people may want the same policies of their states to also reflect on the federal government.”
Yes, and they’d like that down to the local level also, but what they don’t want, what no one wants is the Federal Government in every aspect of their lives and businesses because that kind of goes against the whole concept of what being an American is all about.