GE, Boeing, Oracle form coalition to support Republican border tax

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Jonnax

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http://www.reuters.com/article/us-usa-trump-companies-tax-idUSKBN15H2VV

U.S. companies including major exporters General Electric Co (GE.N) and Boeing Co (BA.N) launched a coalition on Thursday to back a House Republican plan to tax all imports, saying the proposal would "support American jobs and American-made products."

The group, comprised of more than 25 U.S. companies and dubbed the "American Made Coalition," also includes Dow Chemical Co (DOW.N), Eli Lilly and Co (LLY.N), Pfizer Inc (PFE.N), and Oracle Corp, the companies confirmed.
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The group's launch underscored a growing division in corporate America over the House Republican proposal that would cut corporate income tax to 20 percent from 35 percent, exclude export revenue from taxable income and impose the 20 percent tax on imports.
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Can anyone find what the full list of companies are?

Edit:
Here's the PR Source:

http://www.prnewswire.com/news-rele...oalition-to-support-tax-reform-300401391.html

The Tax Foundation estimates the House Blueprint proposal will create 1.7 million new jobs, boost GDP by 9.1%, and increase wages by 7.7%.
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This seems to be their website:
http://www.americanmadecoalition.org/about_us
Interestingly there doesn't seem to be a list of companies involved just this list:

Our Members: The American Made Coalition represents a broad collection of industry leaders from every corner of America's economy, including:
Manufacturing
High tech
Software
Medical device production
Agriculture
Energy production
Film and production
Biopharmaceuticals
Information Services
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They don't even seem to want to put their name on it.

But hey.
Tell Congress to end the "Made in America tax." It's time to level the playing field for American Made products
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Dumb idea. I mean of course companies already operating in the US will love it, massive tax cuts, but it will drive up the price of goods which is going to hit the low and middle income earners.
 
So they get a 15% tax reduction, their exports aren't taxed further and their competitors suffer? It would take some real chunky balls not to back that proposal for political reasons.
 
The US is still in the WTO so these companies can sign whatever dirty rag they want, but the US will likely be held accountable if it agrees to this kind of arrangement. The BRICS will shit bricks, hehehe. This will evoke further protectionism from the countries affected in retaliation. Bad news all around. Really astounding that this is even given remotely considered.

They can talk about job creation as long as they want, but the end result will be to promote inefficiency in the domestic industry and increase cost-of-living for those who depend/buy good and cheap foreign alternatives (read: everyone in the US), e.g. Korean/Chinese/Japanese electronics. Like, significantly. The people who end up hurt because of this kind of measure will see the least of its purported gains. I seriously doubt the US govt. will use that money to improve social services or lower taxes on the poor.
 
komplanen said:
So they get a 15% tax reduction, their exports aren't taxed further and their competitors suffer? It would take some real chunky balls not to back that proposal for political reasons.
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Of course the idea that this wouldn't lead to a trade war is pretty crazy.
 
Does Boeing expect the other countries not to retaliate and impose a similar import tax from US? Good for Airbus I guess.
 
Someone needs to just burn Oracle to the ground already... such an absolutely shity and scummy complany in all reguards. It's existence is a blight on the world.
 
Is that 20% tax rate on imports really a thing people are taking seriously? There's no way that gets past their constituents even if they are dumb enough to think they're getting a wall in return.
 
It would make sense for a company that has zero international trade, but anyone else would be shorting themselves in the foot. And I highly doubt the jobs figure. I wonder does that take into account the loss of jobs because of the decline in US exports?
 
Predicting 1.7million new jobs?

I'm predicting company executives and owners pay themselves atleast a 15% bonus.
 
This is so stupid. It's just going to create a divide between companies that mostly employ skilled workers or positioning to embrace automation (therefore maximising the juicy corporate tax cut), and those who can't.

And do they not think it'll have a profound domino effect? Other countries and organisations will just keep the status quo? Protectionism never works out over the long term - what you try to protect will just erode from other means.
 
This is bizarre land. I remember when it was the left that was anti-globalisation and feared foreign interactions in domestic markets, whilst the right were all about free trade.
 
I think other countries will just retaliate with higher import taxes of their own on american goods.

How realistic is it for other countries to just sit there and take it?
 
NPR's Planet Money just did a podcast about this tax.

Try listening here

Some economists interviewed think the effect on the economy would be a quick adjustment, neutral on consumers, but shift the incentives.
 
That doesn't seem too smart for a company with so many foreign government contracts like Boeing. If people shit on them a lot bc of this in,say, Mexico, this could pressure the respective governments to go with other firms instead.
 
Something doesn't seem right about this GE is US based but has many plants outside the US I believe they even have a plant in Mexico.
 
nacimento said:
That doesn't seem too smart for a company with so many foreign government contracts like Boeing. If people shit on them a lot bc of this in,say, Mexico, this could pressure the respective governments to go with other firms instead.
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Siemens and Airbus are probably like "mmmm".
 
There is a big article in one of Germanys leading newspapers (link) that argues, that this would actually be a good thing, as it would make it almost impossible to move earnings to tax havens (like Apple does). But it would only work, if the rest of the world would follw suit with comparable tax models.
 
Funky Papa said:
Siemens and Airbus are probably like "mmmm".
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Could they really compete against a Boeing contract where Boeing is not taxed in the US at all on the contract (the plan says no tax for export revenue) and is subsidized by border taxes (that is also the plan, that exports are subsidized by imports).

I think Boeing has thought it through and made the decision to support it because they will be at a competitive advantage even in a retaliatory tariff scenario.
 
Well of course it makes sense, integrity doesn't get you a fat corporate paycheque, fascist regimes trying to buy your loyalty do.

CyclopsRock said:
This is bizarre land. I remember when it was the left that was anti-globalisation and feared foreign interactions in domestic markets, whilst the right were all about free trade.
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Spell bee competition:

Judge: "Spell Republican for me."

Contestant: "Republican. H-Y-P-O-C-R-I-T-E. Republican."

Judge: "Correct."
 
numble said:
Could they really compete against a Boeing contract where Boeing is not taxed in the US at all on the contract (the plan says no tax for export revenue) and is subsidized by border taxes (that is also the plan, that exports are subsidized by imports).

I think Boeing has thought it through and made the decision to support it because they will be at a competitive advantage even in a retaliatory tariff scenario.
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I wonder if political acrimony may weight in on top of retaliatory measures, particularly in China.

Then again, I'm no economist.
 
numble said:
Could they really compete against a Boeing contract where Boeing is not taxed in the US at all on the contract (the plan says no tax for export revenue) and is subsidized by border taxes (that is also the plan, that exports are subsidized by imports).

I think Boeing has thought it through and made the decision to support it because they will be at a competitive advantage even in a retaliatory tariff scenario.
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You are assuming that the country Boeing is exporting to won't raise american import taxes in retaliation (cough China).

I think you are making a mistake if you think other countries will just sit there, take it and let their own companies lose competitiveness to American companies. What they are going to do is raise the taxes on american goods to level the field again.

Anyway, I wish americans good luck. It is you against the rest of the world now, and if I am a betting man, I think America will lose the coming trade war.
 
As a EU citizen (and becoming even more attached to that everyday) I hope we reply with a tariff for products coming from the Divided States of America.

Bring it on!
 
KingSnake said:
Does Boeing expect the other countries not to retaliate and impose a similar import tax from US? Good for Airbus I guess.
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The only countries competing with Boeing's products are basically France, Germany and UK with each contributing majorly to Airbus. On the other hand, USA is a much larger plane market than those combined.
 
numble said:
Could they really compete against a Boeing contract where Boeing is not taxed in the US at all on the contract (the plan says no tax for export revenue) and is subsidized by border taxes (that is also the plan, that exports are subsidized by imports).

I think Boeing has thought it through and made the decision to support it because they will be at a competitive advantage even in a retaliatory tariff scenario.
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I don't see this math working. They are getting the tax on their export revenue dropped but instead they will be taxed on their export turnover by other countries.

Lagspike_exe said:
The only countries competing with Boeing's products are basically France, Germany and UK with each contributing majorly to Airbus. On the other hand, USA is a much larger plane market than those combined.
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Both Airbus and Boeing are selling to the whole world. Boeing exports will be taxed everywhere, while Airbus' won't where there is a trade deal with EU. And if USA goes fully protectionist you can bet a lot more trade deals will be finalised outside US.
 
bobbytkc said:
You are assuming that the country Boeing is exporting to won't raise american import taxes in retaliation (cough China).

I think you are making a mistake if you think other countries will just sit there, take it let their own companies lose competitiveness to American companies. What they are going to do is raise the taxes on american goods to level the field again.
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How do I assume that they won't raise American import taxes in retaliation? My last words were "retaliatory tariff scenario."

They can raise a retaliatory tariff, but it needs to be understood that this plan is a combination of 1) lower corporate tax overall 2) zero tax on exports, 3) subsidies for exports and 4) import tariff.

If you just match an import tariff with an import tariff, you are still at a disadvantage.
 
This seems like a really, really bad idea. I get the motivation behind such a measure, but protectionism is going to launch a trade war where imported goods that simply can't be manufactured affordibly at home are going to be taxed excessively. I mean just look at Brazil if you want to see what happens with pricing when protectionist tarrifs are introduced.
 
KingSnake said:
I don't see this math working. They are getting the tax on their export revenue dropped but instead they will be taxed on their export turnover by other countries.
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They are getting tax on their export revenue dropped to zero, they are getting the tax on their domestic revenue dropped, the foreign importer of record (not them) may potentially pay a retaliatory tariff, and they are getting subsidies for exports.

Technically, tariffs are taxes on the foreign importer, not the exporter, so any retaliatory tariff does not show up as a cost on their own books.
 
numble said:
How do I assume that they won't raise American import taxes in retaliation? My last words were "retaliatory tariff scenario."

They can raise a retaliatory tariff, but it needs to be understood that this plan is a combination of 1) lower corporate tax overall 2) zero tax on exports, 3) subsidies for exports and 4) import tariff.

If you just match an import tariff with an import tariff, you are still at a disadvantage.
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I dont think that is right. Sovereign countries can unitarily decide the level of their import tax. It can be higher than the one Americans impose.

As I said, they will pick a tariff to protect their own businesses, and tax american goods whatever is necessary to level their playing field and keep their local industries competitive. And not just that, other countries can also reform their tax structure to whatever they need to stay competitive. America is not the only one that can adjust their corporate and export taxes. All of this just seems to trend towards a zero sum game where nobody benefits to me, which is why a trade war is a bad thing I guess.
 
numble said:
They are getting tax on their export revenue dropped to zero, they are getting the tax on their domestic revenue dropped, the foreign importer of record (not them) may potentially pay a retaliatory tariff, and they are getting subsidies for exports.

Technically, tariffs are taxes on the foreign importer, not the exporter, so any retaliatory tariff does not show up as a cost on their own books.
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Sure, but in the end it adds up to the final price. As usually their clients are governmental companies, the price plays quite an important role here. My point was that I'm not sure the math adds up enough that with all the internal tax cuts they can eat up enough of the price out of the factory to make sure the final price for export is still competitive.

Sure, if USA can subsidy the exports for them, but then all the assumed positive have a very interesting hidden cost.

bobbytkc said:
I dont think that is right. Sovereign countries can unitarily decide the level of their import tax. It can be higher than the one Americans impose.

As I said, they will pick a tariff to protect their own businesses, and tax american goods whatever is necessary to level their playing field and keep their local industries competitive. And not just that, other countries can also reform their tax structure to whatever they need to stay competitive. America is not the only one that can adjust their corporate and export taxes. All of this just seems to trend towards a zero sum game where nobody benefits to me, which is why a trade war is a bad thing I guess.
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If I'm not wrong, according to WTO rules they can pick a tariff level that it's enough to fully compensate the impact of the US tariffs. So it's not about percentages, but the total amount.
 
It's a given that if the US implements taxes on imports other countries will respond tit for tat, no idea on what that would mean, could affect other companies or companies in states that are politically "vulnerable", etc.

Who knows...
 
I mean isn't protectionism one of the number 1 proven causes of conflict in modern history? Not that various forms of protectionism don't exist right now, but this sort of policy seems unprecedented in today's global economic reality.
 
Does the US really want to make themselves look less attractive to external trading partners with China's rapid development? lol
 
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