Even in the face of lower energy costs, it's guaranteed, industries that decide to come back will suffer under the attack of progressive socialist democrats that want a large share of their profits.
Know this, the profits that the democrats can steal initially will then be used to steal them all.
An Obstacle to Bringing Jobs Back to America: Taxes and Regulations
Source: Steven Malanga, "No Shore Thing," City Journal, Winter 2015.
February 12, 2015
Some American companies have started bringing jobs back to U.S. shores, says Steven Malanga, a senior fellow with the Manhattan Institute, but much more needs to be done at the state level to encourage companies to investment domestically.
Some multinational companies, says Malanga, have returned to producing goods in the United States because the overseas production advantages, such as lower wages, have diminished (Malanga notes that pay for Chinese industrial workers has increased threefold since 2001). Additionally, with falling energy costs in the United States thanks to fracking and the shale boom, energy-intensive firms have an incentive to locate domestically rather than abroad. Additionally, nations such as China have lax intellectual property protections, unlike the United States.
But it's not all good news -- while Malanga cites estimates that "reshoring" could bring 1 million American manufacturing jobs to the United States by the end of the decade, there are too many states with laws on the books that make business tough. For example:
Some multinational companies, says Malanga, have returned to producing goods in the United States because the overseas production advantages, such as lower wages, have diminished (Malanga notes that pay for Chinese industrial workers has increased threefold since 2001). Additionally, with falling energy costs in the United States thanks to fracking and the shale boom, energy-intensive firms have an incentive to locate domestically rather than abroad. Additionally, nations such as China have lax intellectual property protections, unlike the United States.
But it's not all good news -- while Malanga cites estimates that "reshoring" could bring 1 million American manufacturing jobs to the United States by the end of the decade, there are too many states with laws on the books that make business tough. For example:
- Industrial firms often face high taxes in exchange for lower taxes on residents. Malanga notes that 39 states impose higher property taxes on commercial businesses than on residents, which especially hurts manufacturing facilities, which need large amounts of space.
- Unemployment insurance taxes make employing American workers expensive compared to their foreign counterparts.
- Regulations in the United States are wildly expensive -- in California, regulations cost companies an average of $135,000 annually.
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