again just absolutely NO FUCKING BUSINESS SENSE!!!!!
OK - no business sense because I said that tax breaks will not make it cheaper to produce goods in US that China.
Which is bizarre seeing as I have been running a country operation for an MNC for the past 12 years and I also have my own software company in Thailand that sells into the US - and that is doing quite well too!
you dont have to make is cheaper to produce products here but to OPERATE HERE. I know to a person who doesnt understand the terms or from your posts business in general these seem like the same thing but they arent.
Could you rephrase that in English please. Maybe go out & get some fresh air first.
building a product involves simply the Cost of Goods Sold (COGS) in other word direct cost (not to be confused with fixed cost) but the cost of Operations include everything that goes into building that product including overhead.
Overhead that is made more expensive by useless legislation, red tape, costly government processes that require lawyers to interpret and guide a business through.
Correct - and safety regulation, pollution control, child labor laws. People out here are still dying in Asbestos factories.
You might want to hold off on the red tape comments though 'cause you obviously haven't operated a business in Asia. Singapore is very easy but most countries here are a complete nightmare in terms of red tape - absolute minefield. Of course, a lawyer and a little tea money helps.
If you go further down the income statement you will get non operating cost such as overhead, interest, taxes, pay for employees who dont build the product or service the client directly, ever heard of EBIT or EBITDA?
Making the bottom line better can be done many ways in terms of this conversation you can increase "E" or earnings or decrease "IT" interest and taxes.
lol - whose been and read "CPA for dummies". I do understand the numbers, I don't prep the accounts, just sign off on them. I have other people that perform menial tasks like that.
Yes - which proves my point that taxes are only part of the equation. Manufacturing in China adds a lot of cost - logistical, time, scrappage but it is all more that compensated by the fact you can get a Chinese guy to work on $5 a day and if the job gives him cancer in 5 years, you can just get another one.
You see what YOU NEED TO REALLY UNDERSTAND is its not about making it cheaper to produce things in the US, just cheaper to operate in the US.
You also have to remember it costs companies to move operations over seas as well.
Use this formula to get a better grip on it: Staying in the US < Moving entire operations overseas - savings from moving operations over seas
making it cheaper to stay in the US can be done a number of different ways.
Well - seeing as I've helped a number companies move parts of their operation overseas, I can give you some insight. Even as a very ethical employer, the US will simply never be able to compete on a cost basis because right now, the cost of living out here is so low that regardless of what other changes you make, you simply cannot reduce costs to match.
On the upside, salary growth out here is very high on an annual basis but static in the US, so as you find your standard of living dropping, out here it is rising and at some point they will meet in the middle.