Globalism As A Fact Of Life
Globalism is taking shape. First goods were imported from Japan. Then US companies sent manufacturing off shore to many places, most notably China but the companies always headquartered in the US.
But now Pfizer Pharmaceuticals is doing a very obvious thing. The corporate tax rate in the US is 35% while the same tax rate in England is 20%. Therefore Pfizer, the largest Pharmaceutical company in the world is buying England’s largest pharmaceutical for over a hundred billion dollars and will move its headquarters to England to reduce its tax by 15%.
What else could one expect? US cities and States compete with each by giving tax breaks to companies so why shouldn’t it be done globally. Perhaps Wall Street will move. If Mexico catches on quickly maybe even to Mexico City.
What will the dullard Great Pretender in DC do? If he doesn’t move quickly, that is issue another Executive Order, redistribution of the wealth to ‘his people’ will become a moot point. No wealth to redistribute.
The estimable Pat Buchanan, https://www.vdare.com/articles/abolish-the-corporate-income-tax-and-bring-offshored-jobs-home , has indicated the path the Great Pretender should take. Simply abolish the corporate income tax thereby keeping what we all may have thought of as ‘our’ corporations and perhaps attract a host of others. That would decrease our unemployment reducing those costs while receipts from personal income would offset the loss in corporate taxes plus.
It’s a possibility. The Great Pretender is going to have to think and act fast though. Here’s where economics demolishes ideology. Act, Barry, Act!