Wire and Cable Technology Blog

The US has the second worst business tax climate in the world following Japan. Japan has enacted new business tax legislation that, when it takes effect in January of 2012, will make the US the worst place to build a plant. Until this madness is fixed, corporations will continue to mass exodus into countries where they can make more profits, and where the presiding government acts like they are an asset and ally rather than the enemy of government. People mostly hear about the large corporations, but almost all of the materials that I currently purchase for my systems are manufactured overseas, mostly in China. Most of these products were manufactured in the US as little as 5 years ago.

The US has the second worst business tax climate in the world following Japan.

That may be so, how about the personal tax climate?

We're a little better off in the USA (at this time). The personal rate in Japan can be 50% based on income.

For a substantial reversal of manufacturing trends to happen, we will have to become poorer and other countries will have to become richer. China can make things cheaper than we can because of their labor costs, but if their labor costs go up, then there will be a reversal. I don't see this happening any time soon.