IT MUST BE MADE HARDER FOR COMPANIES TO FLEE THE USA …

TIME FOR BUY AMERICAN,
HIRE AMERICAN

TAX/ECONOMICS ANALYST: Chris Versace, is Chief In​vestment​ Officer for Tematica Group, and Assistant Professor at New Jersey City University. He is also a columnist for Business Insider, Forbes and The Street.com. He is host of the Cocktail Investing Podcast and author of Cocktail Investing: Distilling Everyday Noise into Clear Investment Signals for Better Returns.

“With the support of President Donald J. Trump, the Speaker of the House, Paul Ryan (R-Wisconsin), has declared that Congress will undertake an effort to reform the U.S. Tax Code.

The last time such a comprehensive tax reform was undertaken was during the Reagan presidency.

Generally speaking, there is broad agreement that corporate and personal taxes should be reduced, and the consensus view is that, yes, the tax code should be simplified. With most things in Washington, however, things aren’t always that simple and here too there is some disagreement, particularly over the issue of the “border adjustment tax” or BAT.

The BAT would raise about $1 trillion over the next ten years that would be a tool in comprehensive tax reform to help lower the corporate tax rate and shift corporate taxation to a “territorial system.” The BAT, as part of comprehensive tax reform, is also likely to quell Trump Administration demands for tarrifs as part of any tax reform plan. If the goal is to improve the business climate for domestic companies then the BAT is a viable alternative to tarrifs.

As a candidate for President, Mr. Trump argued that the tax code incentivizes companies to move workers and facilities abroad. As we have seen, over the past generation, more and more corporations have uprooted from places like Ohio and Michigan and moved to China, Ireland and Mexico.

The House Republicans have submitted a draft tax reform proposal that reduces taxes across the board, calls for simplification, and implements numerous economic pro-growth policies. The bill includes a provision creating a territorial system of international taxation, and adding a border adjustability component. That has become ground zero in a battle between lobbyist for Fortune 500 companies – many of which have shipped jobs and facilities overseas. They are intent on removing this provision from tax reform legislation.

As a means of removing the provision, companies like Nike, WalMart and Levi’s have announced the formation of the “Americans for Affordable Products.” The group describes itself as a “coalition of job creators, entrepreneurs, and business leaders united against higher prices on everyday necessities.” It should come as no surprise group members have a long history of closing American factories and opening them overseas.”

READ: newsmax.com/Finance/ChrisVersace/Trump-Border-Jobs-Economy/2017/02/09/id/772807/

BIO: Chris Versace is a financial columnist and equity analyst with more than 20 years of experience in the investment industry. He has been ranked an All Star Analyst by Zacks Investment Research and his efforts in analyzing industries, companies and equity securities have been recognized by both Institutional Investor and Thomson Reuters’ StarMine Monitor.

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WEBSITE: TematicaResearch.com

FACEBOOK: facebook.com/VersaceChristopher

TWITTER: @_ChrisVersace

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