Google’s New Phone: Made in the USA
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  • ljgude

    Rumor has it that Apple will announce a “Made in the USA” product at WWDC in a fortnight. Coupled with the congressional inquiry into why Apple and Google keep large amounts of their profits overseas to avoid paying what has become the highest corporate tax rate in the world the sudden preference for domestic manufacture arouses my inner cynic. Here in Australia we have a slightly lower corporate tax rate but also very strict accounting rules that prevent companies using what is called ‘transfer pricing’ to minimize tax liability in high tax jurisdictions. At the end of the day I don’t think the US can get their hands on those overseas profits more than once, because it wont take the lawyers long to make the overseas operations of the Apples and Googles entirely separate businesses which have no US tax liability. Better to recognize that our corporate tax rates are not competitive and work out a new way to tax corporate profits.

  • twfry

    Being assembled in the US means nothing, the processor, memory, camera, etc, etc, will all be manufactured overseas because those industries already shifted out. All Google is doing is combining all the separate parts in the US, but that’s not ‘made in America’.

  • Globally, manufacturing employment is declining. That’s not changing. Those jobs that are destroyed because of automation are not coming back. But US labor is no longer the too expensive handicap it used to be when corrected for productivity so we will be seeing plenty of cases where manufacturing will be coming back to the US.

    It’s two different trends operating in different directions on the same statistic, how many people are employed in manufacturing in the US. If you want to pick a fight, you can emphasize one trend or the other, but if you want wisdom, realize that both trends have their ebb and flows internal to them and that you have to understand both to get a clue as to what is the net effect.

  • “Today’s tech giants seem much less cavalier about delivering such dour news to Washington.”

    No one likes visits from the IRS. Much better to be a Solyndra investor.

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