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Non-Tech : Kirk's Market Thoughts -- Ignore unavailable to you. Want to Upgrade?

To: Jerome who wrote (1279)	5/19/2014 8:20:35 PM
From: Kirk ©	Read Replies (2) \| Respond to of 26769

No, that is not correct. Jobs have moved overseas for many reasons... the number one reason is lower wages. The number one reason is total cost to the bottom line. Wages are but a part of it. Some jobs like building chips on highly automated lines go overseas because there is no CA property tax on the $5B chip fab investment PLUS there is already cash overseas that can save 35% repatriation fee if they buy the equipment to build the chips and ipads for factories built outside the US. The actual labor cost on a chip fab is pretty small and my guess is a secondary consideration. The cost of Asian labor and shipping to the US is getting high such that SOME people I ACTUALLY TALK TO WHO OWN COMPANIES told me PERSONALLY that they are considering moving manufacturing back to the US... of course almost all their customers are here in the US so they don't get that 35% repatriation tax advantage. Finally, unlike you, I don't have "wealth envy." I really don't care what they do with the cash that comes back to the US. It will all eventually help the economy in some way. As I pointed out before, it would make it 35% cheaper to build new plants in the US for new capacity right out the gate so I would assume they would do some of that if they knew the tax cut was permanent. Remember, I am not arguing to cut the individual tax rate. It would be GREAT if they gave ALL the repatriated cash to Steve Jobs heirs as we in CA would get 12.3% of it as CA income tax and the Feds would take about 39% of it... much, much more than the 35% rate they are avoiding now.... so you'd actually collect MORE!