Trump’s plan to tax companies that want to outsource their goods in order to build plants in cheaper countries only to turn around and sell in America is brilliant. By taxing the companies with an import tax fee they will be forced to keep their plants in America which means increasing the job market and ultimately improving the economy.
Emboldened by his “victory” with Carrier Corp, which agreed to keep 1,100 workers in the US instead of outsourcing them to Mexico in exchange for $7 million in tax incentives over 10 years
“Companies are not going to leave the United States any more without consequences. Not going to happen,” the President-elect said on a visit to a Carrier Corp plant in Indianapolis cited by Reuters.
Trump, did not elaborate just what the consequences would be but during the election campaign he frequently threatened U.S. firms that his administration would put a 35% import tariff on goods made by American manufacturers who moved jobs offshore.
According to Breitbart–
Friday at a rally for Louisiana Senate candidate Republican John Kennedy in Baton Rouge, President-elect Donald Trump restated his proposal to impose a “substantial tariff or tax,” on the imports of companies that move production out of the United States.
Trump said, “We don’t want companies to leave our country, go to another country, and sell their product and then sell the product where they left. Now we have all unemployed people. They had jobs for 32 years. I mean Carrier is a great example, and Carrier— we did a great job with Carrier, but, you know, they announced it a year and a half ago, they already have a plant built. Think what you could do if they haven’t started or haven’t said anything yet. They’re not going to leave because we’re going to put up a very high tax, and if they want to build their plant out of this country, that’s fine, but if they think they’re going to sell their product back into the country and have no tax, that’s not going to happen anymore folks, not going to happen, and therefore they’re not going to leave. They may leave a state and go to a different state. Maybe they’re having a hard time with their employees.”