The “GOP” and “corporate enemies” mentioned in the same sentence seems like an oxymoron but according to an article by Dylan Matthews, several corporate giants such as Koch Industries, Walmart and Best Buy are rattled by the new Republican corporate tax proposals.
Put simply, the plan is to cut taxes on exports and raise them on imports in hopes of creating more jobs and less expensive products for Americans. The issue here is many corporations import goods that they pass along to retailers, and even companies such as General Motors manufacture auto parts outside the US, which they assemble here.
“But that doesn’t mean the policy is a sure thing. It’s already made some major corporate players — including retailers, who depend heavily on imports, as well as Koch Industries — into skeptics of Republican tax reform efforts, earning the GOP some powerful enemies as it begins its first major effort to remake the tax code in fourteen years,” says Matthews.
Corporations are fearful that their bottom lines might be affected. If the plan works, and that’s a big if according to economists, the hope is Americans will start buying more products manufactured in the US, and products will eventually become cheaper, both to the consumer and to the manufacturer. In turn, corporate revenue will go up, not down, and the value of the American dollar will become stronger across the globe.
The likelihood of this plan ever making it off the House and Senate floors is next to never. Corporations and lobbyists are sure to rally against it. It’s a well-known fact that most of the GOP. receives large donations from these monoliths. The more likely scenario is similar to the one in Kansas: state government gave tax breaks to LLC’s and now the state is bankrupt. If they give the same type of breaks to companies across the country, it will impoverish the whole nation. – Ellison Walcott