US Manufactures Divesting Holdings In America

Manufacturing in the United States sees the new tax structure as an impediment to good business sense. As this article points out, Alcoa is just the beginning of manufacturing making a run to other countries to make their products to avoid crushing taxes. What happens to employment when these manufactures move over seas?

I'm not sure how this will do them much good in that Obama is going to raise tariffs on all foreign imported goods as well. We, as citizens, will of course pay the difference as the price of everything will go sky high. But then, the well fare of the country to a Marxist isn't what this is all about, crushing the economy and causing chaos is.

Keep the faith and join a tea party this April to show how pissed you are!


Meanwhile, aluminum maker Alcoa is revisiting its strategy of making primary metal in the U.S.
This is due to a proposed change in federal law to raise taxes on overseas earnings. More specifically, Congress wants to end the deferred payment of taxes on profits earned overseas. So to help pay for its pyramids (sorry, “stimulus”), Congress wants to tax businesses immediately in the U.S. on money earned in foreign jurisdictions. Alcoa is not pleased.

"Let's step back a bit and take a look at what we need to make aluminum," said Alcoa spokesman Kevin Lowery in a recent interview with the Pittsburgh Tribune-Review. "We need the raw material bauxite, which is not found here (in the U.S.). We also need competitively priced power, like we have in Iceland. And we want to be close to our markets," about half of which are not in the U.S. according to Alcoa sales data.

In other words, the 'Aluminum Company of America' could just as easily become the 'Aluminum Company of Iceland.' The new company could sever its U.S. ties and run its overseas business activities without paying any U.S. taxes at all. Or, I should add, employing any U.S. workers.
So net-net, the “stimulus” could stimulate at least one major U.S. manufacturer (or perhaps MANY major U.S. manufacturers) to divest their foreign operations and set them up as stand-alone foreign entities. That's hardly the pathway to future national prosperity.