Quote:
Originally Posted by thommy
infact the idea of bringing back work from cheap countries to the own is not logic at all.
EVERY business calculation includes the factors "equity interest" and "profit"
so lets say a product what is sold for 100 dollars plus 5% capital interest and 10% profit would cost 115 dollar.
if the production cost for labour gets up 5 dollar it would lead the product to 105 plus 5% capital interest plus 10% profit = 120.75 dollar
that means, that the guy who make 5 dollars more have to pay 5,75 more for the same product. WHAT EXACTLY happens now with the prosperity ?
AND the point is that this 5 dollar more may bring him (because of the progressive tax) into another tax rate - what means that he does not get 5 dollars from that but maybe only 4.
that means that he pays not only 75 cent more - he pay 1,75 dollar more as he did before.
it is that simple and i canīt understand why nobody can see this simple and logic point.
|
I'm sorry if you're too blind to see how wrong you are.
The company overseas isn't contributing to the Western economy. So let's say it costs $25 in China, $25 the Western economy isn't getting.
The guy making it is now off benefits and spending in the Western economy, paying taxes and contributing instead of costing the country.