Trump's territorial tax plan gives no incentive for business and manufacturing to relocate to the US

What's up with that, huh? Maybe he's not really serious about bringing the jobs back here after all.

From Phyliss Schlafly here in 2011:

Although the Perry plan's most striking feature is its anti-marriage bias, his proposal for corporate income is equally pernicious. Perry would shift businesses to a "territorial" tax system, which means that corporations would be taxed only on the profits they earn inside the United States. 

We should do exactly the opposite. We should reduce or eliminate taxes on businesses that employ Americans producing goods and services inside our own country, while increasing taxes on the profits that corporations earn by outsourcing or manufacturing overseas. 

Above all, we should eliminate the foreign tax credit, a self-destructive provision that allows corporations to pay China or Venezuela or Saudi Arabia the money they would otherwise owe the U.S. government. Let's also cut out the deductions that U.S. corporations take for hiring foreigners to do work that Americans can do. 

Those who support a territorial business tax argue that it will encourage multinational corporations to bring home the profits they earn overseas, but that's unlikely so long as it remains more profitable for them to invest in cheap-labor countries. Of Republican presidential candidates, only Herman Cain and Rick Santorum understand that what corporations need is lower taxes on their operations inside the United States rather than on the profits they earn in other countries. 

Vote Trump: Government work usurped real manufacturing work under liberal Republican George H. W. Bush in 1989

Commenter explains Donald Trump to oblivious Marxist at CBS News MoneyWatch who appeals to Richard Hofstadter's passé paranoid style

Here:

IHATEUSERNAMESLIKETHIS April 21, 2016 6:6AM

It's not class resentment.

First you destroyed the way we funded our homes and communities -- the Savings and Loans.

Then you destroyed the ways we collectively bargained -- the unions.

Then you stole the [principal] of the Social Security Trust fund, some 2.7 trillion dollars so it couldn't earn interest and started to act like it was a handout you were giving us.

Then you shipped all the manufacturing jobs to China.

Then you shipped the service jobs to India.

Then you "commoditized" the mortgages on our homes in violation of the long standing "statute of frauds" and put them on the big roulette wheel you call Wall Street.

Then when that scheme failed you bailed out the banks that came up with the fraud and stuck us with the bill to bail them out.

Then you ran the money printing press so fast, so the big roulette wheel could prosper while the rest of us found our money buying less and less.

That is not called class resentment. That is called waking up.

Since the 1990s 144,000 manufacturing and related jobs lost in Wisconsin due to free-trade agreements

Reported here:

Wisconsin has lost more than more than 68,000 manufacturing jobs since the mid-1990s and the first of several controversial trade pacts with Mexico, China and others took hold.

Additionally, the U.S. Department of Labor has certified about 76,000 Wisconsin workers in various fields as having lost their jobs due to either imports or the work they do being shipped overseas. ... 

Caterpillar has laid off about 600 of its 800-plus workers over the past two years because of a business slowdown. ...

Wisconsin’s heavy manufacturing sector, once one of the country’s strongest, has been taking a lot of punches in recent years. General Motors, General Electric, Chrysler, Joy Global Surface Mining and Manitowoc Cranes have all cut jobs or closed operations in recent years for a variety of reasons.

Hometown companies such as Kohler, the plumbing supply manufacturer; and Trek Bicycles have offshored jobs to India, China and Taiwan.

Meanwhile, Madison, the state capital, will lose 1,000 jobs over the next two years as the 100-year-old iconic Oscar Mayer meat processing plant shuts down. And just east on I-94 in Jefferson, Tyson Foods will cease operations at its pepperoni processing plant, cutting 400 jobs.

These are your manufacturing jobs lost under Bush and Obama

4.331 million lost under Bush and Obama still net down 523,000

Democrat turnout in Michigan's presidential primary was up 97% over 2008, so how is Donald Trump's big win here caused by Democrat cross-over votes?

The big story in Michigan is that Democrats turned out in force in the closely fought race between Hillary Clinton and Bernie Sanders. It was a two point race that went down to the wire, won by Bernie by 20,000 votes out of 1.18 million cast.

But the conventional wisdom among Republicans is we're supposed to believe that there were enough large numbers of Democrats left who were energized to cross over and vote for Donald Trump to take him to victory over "real" Republicans like Ted Cruz, John Kasich and Marco Rubio.

This has to be the kookiest theory yet promoted by The Stupid Party.

I think Trump was chosen here by heretofore inactive Republican-leaning voters, not by Democrats.

God knows there's millions out there who never participate in elections. In Michigan we typically have trouble getting turnout to 20% of the voting age population. In presidential election years it averages 18.32%.

Turnout yesterday broke records going back before 1980, at 34%.  

Republican turnout was up over 30% from 2012, and over 50% from 2008, but Democrat turnout was up a whopping 97% over 2008 when Hillary and Obama famously duked it out.

A total of 601,219 votes were cast in the 2008 Democrat Primary, but in 2016 1.18 million. (There was no Democrat primary here in 2012. It was a pro-forma caucus in which 195,058 votes were cast, the vast majority for the incumbent president Barack Obama.)

Democrats were too preoccupied yesterday fighting over Hillary and Bernie to care much about Donald Trump.

That's the good news for Trump supporters, and the bad news for his Republican opponents. Donald Trump is remaking the Republican Party with support from people who appreciate his issues and strong leadership instead of theirs: manufacturing jobs, illegal immigration and trade.

Yesterday they came out of the woodwork to vote for him.

Trump understands that JOBS are Americans' main concern

So says John Crudele, here:

'I think Donald Trump — if he can stop himself from saying crazy things about his wealth, immigration and such — will be a very important factor in the 2016 election. Why? Because he understands that the main concern in this country today is the economy — which is another way of saying “jobs.” That was the chief thing on people’s minds in 2012 and during the last congressional election in 2014. It still is today and will be throughout the primaries and right up to the 2016 election. “I will be the greatest job president God ever created,” Trump said last week. People are worried about immigration because the newcomers will take the scant jobs available. China is bothersome because its manufacturing might is sapping jobs from the US. One group in this country doesn’t like another group because we are all fighting for the same jobs. Jobs, jobs, jobs!'

The libertarian free-traders in both parties have killed the American middle class: Reagan, the Bushes, Clinton, Obama

From Patrick J. Buchanan, here:

The average U.S. family has not seen a rise in real wages in 40 years. This is directly traceable to the loss of more than one-third of all U.S. manufacturing jobs. And that loss, that deindustrialization of America, is directly tied to the $10 trillion in trade deficits since Bush I. Writers who celebrate how U.S. imports have risen in this month or that year almost never mention the trade deficit for this month or that year. Perhaps that is because the United States has not run a trade surplus in four decades, whereas, in the first 70 years of the 20th century, we never ran a trade deficit. Trade surpluses add to GDP; trade deficits subtract from GDP.

And when in a company town the company closes the factory, the town often dies. And all the little satellite businesses—bars, diners, food stores, pharmacies—that rose around the factory, they die, too. The tombstones of countless dead towns across America should read: Killed by Free Trade. Tenured economists on college campuses call this “creative destruction.”

The stagnant wages of two generations of U.S. workers also help to explain the crisis of Social Security and Medicare. For, as workers’ wages fail to rise, or fall, so, too, do their contributions in payroll taxes. If, as Simpson-Bowles contends, our largest entitlement programs are heading for insolvency, free trade played a lead role in that American tragedy. And where is the liberal morality in passing laws to ensure U.S. workers a living wage and clean and safe conditions, and then, through fast track and free trade, signaling their bosses that they can evade these laws by shutting factories here, moving their plants to Asia, paying coolie wages, and subjecting Asian workers to conditions that would earn a U.S. industrialist a tour in Leavenworth?

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I've checked Buchanan's math and he's exaggerating a bit. The total is precisely $9.5 trillion . . . if you go back as far as 1982 under Reagan, but you get the point.

Gun production triples under Obama to 10.8 million in 2013 to meet sales and concealed carry demand

Seen here:

The biggest change in production has come under President Obama. From 2001 to 2007, gun production held steady at between 3 million and 4 million units a year. It topped 4 million in 2008 but shot to 5.6 million in 2009, held steady in 2010 and then spiked to 8.6 million guns in 2012 and a record 10.8 million in 2013, according to ATF data. ...

Mr. [John R.] Lott [Jr.] said firearm sales, even more than manufacturing statistics, are a measure of the health of the movement, and those are also on the rise, with adjusted background checks — a good proxy for sales — growing from 8.9 million a year in 2008 to nearly 15 million in 2013. ...

Nationally, concealed carry permits have grown from 4.6 million in 2007 to more than 12 million now, Mr. Lott said.

American manufacturing still in depression

Reported here:

"American manufacturing has still not recovered to 2007 output or employment levels," the study [by the Information Technology and Innovation Foundation] says. ... The foundation ... says the recent job gains barely make a dent in what it calls the "unprecedented" decline in U.S. manufacturing since 2000. The result is a sector still hobbled by high effective corporate tax rates and limited public investment in research, development and job training. Even with the recent improvement, the study says the U.S. has lost roughly 1 million manufacturing jobs and 15,000 manufacturing establishments since 2000. Trouble in the sector goes even deeper than that, the study says. ... Without computer production, durable goods manufacturing actually declined by nearly 10 percent between 2000 and 2009, according to the foundation. Even non-long-term goods, which include most of the manufacturing related to the nation's energy boom, have underperformed overall economic growth, the study says.

Libertarian free-trade presidents named BUSH get the most blame for lost manufacturing jobs

Since Jimmy Carter took office in January 1977, during whose term manufacturing jobs reached their zenith of 19.5 million, 5.6 million net manufacturing jobs have disappeared, and with them the middle class lives to which they gave birth and from which other good-paying, middle class service jobs had been spawned.

Manufacturing jobs had risen steadily from their post-war low in February 1946 at 11.9 million to their 1979 height, just before Ronald Reagan brought us the Libertarian Revolution in the guise of conservative Republicanism. He gave us both Alan Greenspan in 1987, Fed Chairman and disciple of Ayn Rand, who steered the country right up to the rocks before jumping ship in 2006, and a quixotic message of freedom and free-trade which has made the investor class rich while middle class families have seen their lives wrecked under Reagan's libertarian successors who presided over the export of their good jobs to foreign countries. 

The two Bush presidents in particular, George Herbert Walker and his son George W., get the blame for most manufacturing jobs lost since the 1970s peaks. And George W. far and away gets more blame than anyone else, exporting fully 80% of the net jobs lost:

Carter +0.8 million

Reagan -0.6 million

Bush I -1.3 million

Clinton +0.3 million

Bush II -4.5 million

Obama -0.3 million.

The last thing this country needs in 2016 is a BUSH named Jeb, or a PAUL named Rand.

Mish finally figures out why the part-timing trend caused by ObamaCare doesn't show up in the stats . . . yet

Here:

The BLS defines part time as less than 35 hours. Low wage industries had a lot of part-timers working 32 hours.

Under Obamacare, the threshold of part-time jobs is 30 hours. Obama made that change on purpose to force more businesses to offer healthcare. 

Instead, busiunesses [sic] cut hours. It was the hours of the already part-timers that got cut, and that explains why there was no spike in part time employment.

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Average hours worked overall isn't affected much by part-timers getting their hours cut, since the part-time portion of the workforce is so small to begin with, about 18%.

On an average annual basis, however, average hours worked overall haven't made it above the 35 hour full-time threshold since 1984. Larger forces have been at work to drive average hours down, mainly social revolution leading to the addition of large numbers of women to the workforce in the 1970s, but also a free trade revolution leading to offshoring of manufacturing. The libertarian rout of America has been terrible for its workers.

The verdict on what ObamaCare may do to hours is still not in, however, and won't be for many years because so much of its implementation has been delayed by the regime itself, notably the employer mandate. For large firms mandates do not kick in until 2015, and for medium size firms 2016. 

Media misses huge surge in jobless claims this morning which point to economic weakness

Not seasonally adjusted first time claims for unemployment surged over 47,000 in today's report above last week's 322,512,  to 369,591.

The state with the most claims? Michigan, with 9,821. The sector? If you guessed manufacturing, you would be wrong. All of it was service sector in Michigan. Perhaps only 2,000 of the layoffs elsewhere were in manufacturing. The bulk of the jobs losses everywhere were in services. In other words, in the crappy jobs Americans have reluctantly taken.

To keep pace with the rate of first time claims, not seasonally adjusted, from the first half of the year in the second half, claims need to average 326,000 a week. We're 44,000 over that today, a bad sign.

The problem with free-market ideology in our time isn't about the tax code, it's about patriotism

Free-marketeers in our time want to wipe away the favors of the tax code, many of which go to the middle class in the form of credits and deductions, and to end the taxes on capital which they say deprive the middle of opportunity. 

That seems to be the upshot of the libertarian attempt to co-opt the meaning of the Dave Brat victory over Eric Cantor as expressed by Kim Strassel of the Wall Street urinal, for one. Central to that thesis is poo-poo-ing the importance of the immigration stance of Eric Cantor, which was attacked by Brat with the support of anti-amnesty conservatives, especially Laura Ingraham, and complaining about "the insane complexity of taxes".

What the kerfuffle shows is that Dave Brat is a mighty conflicted person, as are all libertarians, some more some less, a condition they share with liberals, and that he may end up being worse than the man he now replaces. Brat spent much of the campaign talking about closing loopholes and simplifying the tax code, but opposed more immigration because Americans are having massive trouble finding work. The better angels of his nature, all Christian, were at work there. But to his free-market self, there should be no reason why citizenship shouldn't be free. Why should there be a law restricting it to those born here? The federal government has no role "making my life work", he has said. See how well your life works when there's no army to stop an invasion, and there's no will to create one. Just ask Arizona.

Immigration is an issue which ought to direct the attention of the American right toward the bigger picture of what has happened to this country since the Reagan revolution slashed taxes, but hasn't because the right is now obsessed with principles over people. It has become as "ideologized" as any leftist camp. In fact the political discussion on the right deliberately obscures how libertarianism has already impoverished the many and rewarded the few. Some of its adherents today actually foresee an American future more starkly drawn that way, as did Ayn Rand. It isn't capitalism which is to blame for all the income inequality, it's libertarianism.

With the permanently lower tax regime in the US since Reagan also came a headlong plunge into global free trade which has created vast middle classes abroad where there were none before, at the expense of our own. The anchor manufacturing industries of the middle class in this country were exported to places where labor was cheaper, leaving the hollowed out shell of a service industry economy behind to pick up the pieces here.

Where's the patriotism, I'd like to know? Neither side wants to touch the trade argument, mostly because they are all profiting from the new status quo while we are fed a bunch of lies about who are the real conservatives. The answer is none of them are. They've all betrayed us and joined the global investor class where borders no longer matter.

To be a conservative in our time is to be for families with children here, for good jobs here, and for tax and trade policies which prop up those things here and put Americans first, not foreigners and disloyal Americans and disloyal American businesses.

If that's too complicated for you, maybe you shouldn't be in office.  

The Detroit News Explains To Obama How He Could Learn Something About Coal From Europe

Here:

Europe’s experience with such hardline carbon rule-making [as Obama's] would suggest the [US Chamber of Commerce's] claims are more credible than the administration’s. Clean energy investment among European Union members dropped 14 percent in the third quarter of last year, as governments reconsidered policies similar to the ones Obama is putting in place.

The reason: Electricity costs in Europe are the highest in the world, and are helping to drive away manufacturing jobs. Instead of shutting down coal plants, Europe is actually building them again as a way of dropping those crushing electricity costs.

Higher utility bills will hurt poorer Americans the hardest, and ultimately will necessitate even more wealth transfer schemes.

In addition, the resurgent U.S. manufacturing industry will be slowed. Energy is a crucial component of building things, obviously, and today American manufacturers enjoy a distinct advantage because of relatively low electricity costs. Raising those costs will hit industrial states, like Michigan, particularly hard.

January Unemployment Falls To 6.6%, Employment Growth Slows Nearly 42% From 2013 Average

The BLS reports here:

Total nonfarm payroll employment rose by 113,000 in January, and the unemployment rate was little changed at 6.6 percent, the U.S. Bureau of Labor Statistics reported today. Employment grew in construction, manufacturing, wholesale trade, and mining. Both the number of unemployed persons, at 10.2 million, and the unemployment rate, at 6.6 percent, changed little in January. Since October, the jobless rate has decreased by 0.6 percentage point. ... Total nonfarm payroll employment increased by 113,000 in January. In 2013, employment growth averaged 194,000 per month.

Manufacturing Jobs In 2014 Are At 1941 Levels

ObamaCare's 30-Hour Full-Time Rule, A Depression Era Idea Going Back To 1937 And Hugo Black

In 1935, Black became chairman of the Senate Committee on Education and Labor, a position he would hold for the remainder of his Senate career. In 1937 he sponsored the Black-Connery Bill, which sought to establish a national minimum wage and a maximum workweek of thirty hours. Although the bill was initially rejected in the House of Representatives, an amended version of it, which extended Black's original maximum workweek proposal to forty-four hours, was passed in 1938 (after Black left the Senate), becoming the Fair Labor Standards Act.

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Even before Roosevelt was inaugurated, Black introduced legislation to establish a minimum wage and to limit work in most large industries to 30 hours a week in order to spread available jobs to millions of workers who lost their jobs in the Great Depression. Six years later, Black's substantially revised legislation became the Fair Labor Standards Act, America's first minimum-wage law. Black's Senate committee investigations prompted the reorganization of the nation's airline and utility industries. While most Southern members of Congress selectively supported New Deal proposals, Black usually voted for Roosevelt's policies and often complained that the administration did not go far enough to help the lower classes.

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Senator Hugo Black of Alabama, a champion of a 30-hour workweek, agreed to sponsor the Administration bill on this subject in the Senate, while Representative William P. Connery of Massachusetts introduced corresponding legislation in the House. The Black-Connery bill had wide Public support, and its path seemed smoothed by arrangements for a joint hearing by the labor committees of both Houses.

Generally, the bill provided for a 40-cent-an-hour minimum wage, a 40-hour maximum workweek, and a minimum working age of 16 except in certain industries outside of mining and manufacturing. The bill also proposed a five-member labor standards board which could authorize still higher wages and shorter hours after review of certain cases.

Proponents of the bill stressed the need to fulfill the President's promise to correct conditions under which "one-third of the population" were "ill-nourished, ill-clad, and ill- housed." They pointed out that, in industries which produced products for interstate commerce, the bill would end oppressive child labor and "unnecessarily long hours which wear out part of the working population while they keep the rest from having work to do." Shortening hours, they argued, would "create new jobs...for millions of our unskilled unemployed," and minimum wages would "underpin the whole wage structure...at a point from which collective bargaining could take over."

Manufacturing Jobs Remain Down 8.3% Under Obama

Manufacturing jobs remain down 8.3% since Obama was first elected in November 2008, nearly five years ago.

The decline under almost eight years of George W. Bush was a whopping 22.7% (this data series begins in April 2001).

Recovery of manufacturing jobs under Obama began to flat-line in February 2012, over a year and a half ago.

Did We Really Lose 240,000 Full Time Jobs Between May and June Due To ObamaCare?

That's what all the organs of political opposition to Obama and ObamaCare are saying in the wake of Friday's unemployment report.

Investors Business Daily is an example, here:

"It's even worse when you consider all of the net addition to June jobs - repeat, all - were part time. Compared with the 360,000 part-time positions created, full-time employment shrank by 240,000. Year to date, only 130,000 full-time jobs have been added to our economy. The rest of the jobs - 557,000 - have been part time. ... The No. 1 culprit, though, is ObamaCare. The added costs this monstrous piece of legislation has imposed on employers of full-time workers encourages them to hire only part-timers, who get few benefits and no health care."

That is a very one-sided presentation of the "facts", cherry-picked from the seasonally-adjusted numbers from the government's models of what's happening. The seasonally-adjusted chart of full-time for 2013 to date, for example, clearly shows a sudden 240,000 decline in full-time jobs. But the chart of the government's own raw full-time data for 2013 to date, clearly shows that full-time is up well over 3 million jobs for the first half of the year, not "130,000" as Investors Business Daily says. This chart also shows that the current level of full-time is over 1.2 million higher than the seasonally-adjusted model says it is, and that instead of a month over month decline in full-time of 240,000 jobs, we've just experienced an increase of 757,000 full-time jobs in June.

Why the discrepancy? The model anticipates events based on past history which may or may not occur. A case in point is modeling auto manufacturing jobs in the summer, which I think is what the 240,000 drop in the chart is all about. This is anticipatory, an expectation of plant shut downs this summer for retooling, which may or may not occur. The model tries to anticipate these events based on past history. But given strong demand for autos recently I'm guessing the shut downs may not materialize to the extent the model expects them to, introducing more noise into the seasonally-adjusted chart as the summer unfolds. At any rate, I say the chart is already noisy for this reason and should be taken with a grain of salt.

I say stick with the raw data, and chill out with political rhetoric.