Anonymous asked in Politics & GovernmentPolitics · 1 decade ago

Why doesn't America charge American companies who manufacture overseas more taxes then its domestic counerpart?

Many United States-based businesses manufacture their products overseas. This involves manufacturing products anywhere in the world where the labor cost is cheaper. Because of cheap labor, it is often more economical for a U.S. company to manufacture overseas and pay the shipping costs than to manufacture in the United States. Offshoring manufacturing has its pluses and minuses. For a company, the savings may be substantial. However, there are negative effects on U.S. employment, as many jobs in the United States are being cut and replaced by overseas positions.

Read more: US Based Companies That Manufacture Overseas |


Multitude of Companies

Many other U.S.-based companies have manufacturing based overseas, including John Deere, Eli Lilly, and Hewlett-Packard. The field is extensive, from large manufacturers like Honeywell to very small contract manufacturers, like Illinois Tool Works.

Update 2:

For the spelling teachers who like to criticize. Yes you are right I wrote then instead of than. I am human and yes I too make mistakes.

8 Answers

  • Anonymous
    1 decade ago
    Favorite Answer

    I have said this for years. We should also show companies like Dell the door....why should they operate under American protection and the security of our stock market? If Michael Dell loves India and China so much....let him incorporate there and see how soon his company is gone.

    edit: LOL at the Maoist. England shipped jobs to the US in the 40s and 50s? In the 40s the US was producing the munitions and war supplies for England and the US and England combined to save the lives us up to 100 million thankless Chinamen. WE saved China from the Japanese.

    In the 50s, the English were rebuilding from the war and the Marshall plan was in place. The US gave billions of dollars to the Europeans to rebuild their countries, by buying American goods. There were few if any companies offshoring to the US....if they did it certainly wasn't because it was cheaper was far more expensive in the US than in Europe. The US' infrastructure was in tact was the only difference.

  • 1 decade ago

    Ironically that is exactly what British people were saying in the late 1940s and 1950s when the USA overtook the British. British newspapers and people were saying to their manufacturers why were they moving production to the USA when their country needed that money the simple answers was it is cheaper and the workforce are cheap. Now the exact same thing is happening to the USA. Just look at history for the outcome of this situation. To make sure the USA secured all British manufacturing they invested in british debt the USA being the largest hold in 1950s that way they knew they had it made. also they could dictate foreign policy to the British and French because during the Suez crisis Britain and France were going to go to war with Russia but USA said no because it would hurt their business and the British and French had to stand down as the USa could destroy the economy overnight - sound familiar, because the chinese have done exactly the same with the usa

  • 1 decade ago

    The dirty little secret no one is supposed to notice is that a lot of heavy industry has moved to other countries because Environmental Regulations make many of those processes impossible to do here in the USA anymore. So, taxing companies more will only make those products more expensive for the American people. It will not make it possible to do that manufacturing here.

    I have many years of personal experience with the EPA and have seen them run industry after industry out of business with regulations that are not designed to make the process more environmentally friendly but to make the process virtually impossible. Just try to get a permit to open a business that does such work and you will quickly see what I mean.


  • 4 years ago

    No Tax cuts for me and you, those tax cuts impression all people. If my company gets greater taxes then they are going to seek for greater fee-effective labour else the place and that i will lose my activity. and that i will could desire to pay greater funds to the government for reward i visit in no way see if i want them. I dont qualify for pupil loans or well being care and that i'm only 23 through fact I stay my determine and am nevertheless conscidered a based yet I nevertheless could desire to pay intense taxes, and my training out of pocket and for my month-to-month medical charges. And well being center when I somewhat have an bronchial asthma attack. shall we expect of on those ideas before you propose on increasing taxes OBAMA and fellow Democrat. TAXES DONT DISCRIMINATE the two.

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  • Anonymous
    1 decade ago

    You are basically asking for a tariff on goods made in the developing world, by the poor.

    We should be focused on having a balance of trade not setting up barriers that will make goods more expensive for Americans.

    America still exports more than we import.

  • 1 decade ago

    There's no reason to. Lower cost products are priced cheaper, and keeps inflation low.

  • Anonymous
    1 decade ago

    Because there is a class war going on and the rich are kicking azz.

  • 1 decade ago

    It is not good news for global

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