Shift to territorial tax regime, or reduce environmental regulations to grow US manufacturing ?

An article in the Wall Street Journal (August 29, 2012) describes recommendations by manufacturers to the US government to enable growth in US manufacturing. Some recommend reducing environmental laws and thus decrease costs for US production – but this will impact the health of US consumers and thus increase helath care costs. Is this an acceptable compromise ? Others suggest moving to a territorial tax regime that would require US companies to pay taxes only on their US income and not their worldwide income. But will this cause manufacturers to become more competitive and thus increase US employment or provide them the incentive to move more manufacturing out of the US ? Another suggestion is to decrease US corporate taxes but also eliminate various tax credits to compensate. Will this approach enable sufficient tax income to pay for roads and education required by manufacturers ?

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About aviyer2010

Professor
This entry was posted in Global Contexts, Operations Management, Supply Chain Issues, Sustainability and tagged , , , , , , . Bookmark the permalink.

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