Posts Tagged: "tariff"

The European Commission has recently proposed new tax rules that would significantly alter the tax regime faced by technology companies operating in the European Union, including American tech giants like Google and Facebook. The proposal from European authorities would tax tech company revenues in the country where those revenues are generated rather than where the companies are regionally located; supporters of the proposal note that this would keep tech companies from reducing tax payments by locating regional headquarters in European nations with lower tax levels.

The U.S. cannot win a trade war based on raising tariffs. Rather than engage in a trade war that the U.S. can’t win, why not embrace smarter manufacturing policies? when we outsource manufacturing we are handing over the follow-on innovation that will take place on the factory floor. Therefore, by outsourcing manufacturing to the lowest bidder abroad not only have we destroyed the working middle class in America, but we are also increasingly turning over our last economic advantage – our intellectual property. How long will the United States be able to remain one of the world’s leading economies if we continue to outsource that follow-on innovation that takes place through the manufacturing processes?