President-elect Donald Trump has announced that the US is going to reduce and cut back taxes and regulations on business except those who leave the country and sell their products in its dominion area.
This heavy tax burden will apply to US businesses that leave to another country, fire its employees, build a new factory/plant outside the country and then try to sell it in the US.
He states ”Please be forewarned prior to making a very expensive mistake”. He warns that those businesses wanting to move outside of US borders will be penalized.
This new policy has been currently taken in the White House as Mr. Trump has already had an agreement with manufacturer, Carrier, to keep its job inside the US and abstain from moving to Mexico.
He has expressed his anger at Indiana manufacturer, Rexnord’s decision to move to Mexico and fire its employers. He states “This is happening all over the country. No more!”
According to President Trump, that even though this decision may hold up many companies, these US companies have the opportunity to move between all 50 states free of tax and tariff.
Other US businesses who plan to move outside the country will have consequences.
Meanwhile many firms are contemplating the saved costs and cheap labor in other countries such as Mexico, China, etc. Several businesses the past year have already planned to lay off workers and move their factories outside the US.
According to Jeffrey Hammond, industrial analyst, its nearly possible that these firms will change their mind due to the extraordinary benefits of saved costs.
The president elect has stated that the decision of lowering the tax for US companies from 35%to 15% will help in keeping jobs in the US.
According to Mr. Trump, thousands and thousands of jobs will be saved in exchange for an estimate of $7 million dollar tax gain.