Editor’s note: The massive phantom foreign direct investment described in this article shows why CPA’s proposal for sales factor apportionment is needed for the US tax system. If companies were taxed, as we propose, on profits from sales in the US, shifting their profits to shell companies other countries would no longer benefit them. Empty…
Editors note: Another reason sales factor apportionment tax is needed. Capital flows for tax avoidance and profit shifting purposes should not exist. Tax profits based upon destination of sales rather than origin of income, which is manipulated. Study into global FDI finds nearly 40% of flows used as vehicle for financial engineering [Martin Sandbu |…
Editor’s note: WaPo would be called protectionist if taking about trade instead of journalism in this editorial. “For many years, U.S. policy was guided by the logic that it is best to remain open, to showcase a commitment to values and principle. But what if China doesn’t care and doesn’t change its approach?” CHINA’S LEADERS…
Editors note: This is a good move. Gov. Andrew Cuomo wants to make permanent a bill requiring New York’s big infrastructure projects to use American-made steel and iron, he said Saturday. [Eileen AJ Connelly | September 7, 2019 | NY Post] The “New York Buy American Act,” which first took effect in April 2018 and…
Excerpt: “Fundamentally, we believe that China will do everything it can to continue to deceive the U.S., including the use of delaying tactics to continue stealing from the U.S. and in order to take considerable advantage of America’s free and open market.” There is a Chinese proverb that translates as: “It is always better to…
Editor’s note: Fed report finds business uncertainty but little actual impact of tariffs. Investment “uncertainty” from tariffs exists only if you want to invest somewhere else, not America U.S. companies showed widespread concerns about tariff and trade policy uncertainty, but generally reported minimal impact thus far, according to a regional survey from the Federal Reserve.…
Goods deficit with China declines 10% from last year By Steven L. Byers, PhD, CPA Senior Economist The US trade deficit in goods and services for July 2019 decreased by 2.7 percent, to $54.0 billion, down $0.2 billion from $55.5 billion (revised) in June. The July decrease is due to a decline in the goods…
Editors note: Canadian government to allow Chinese steel dumped at below cost to build a $40b LNG project. Watch as Canadian steel fabrication products will try to flood the US market looking for sales to keep domestic plants going. The Canadian Institute of Steel Construction says the federal government is giving away hundreds of thousands of…
Editors note: General Motors is now the biggest exporter of vehicles from Mexico to the United States. General Motors Co. now employs fewer union-represented American workers than its domestic rivals for the first time since the United Auto Workers started organizing Detroit’s carmakers eight decades ago. [David Welch | August 29, 2019 | Bloomberg] GM’s…
Editor’s note: Matthew Klein is one of the smartest global economics reporters. He describes how the US being the central banker to the world hurts our economy. The dollar is pushed too high, our debt grows to big, and economic decisions of foreign governments spill over into our economy. The U.S. economy is about 25%…
