The views expressed in any article published in this blog are the author's own and do not necessarily reflect the views of Joseph Foster or Bob Lupoli.

Wednesday, January 25, 2012

Obama's State of the Union & Manufacturing

Joe: I excerpted then carefully read passages from Obama’s State of the Union Address that included the word MANUFACTURING. After reading the text a few times, I think it simply amounts to another tax scheme and I resent more government involvement in manufacturing. The sweet words involve lowering taxes on manufacturers who, “insource”. It sounds good, he mentions a kind of tax on companies that move off shore to fund the tax break we offer companies that come back. I think the devil is in the details, it may be the case that companies that are not “green” may not be allowed back – is California going to allow surfboard manufacturing back to Southern California and if not are they going to be taxed for having to move offshore because California wouldn’t let them manufacture here anymore. Hard to offer a competitive U.S. made surfboard against Asian wages of $2.50/hr.

Gordon Clark, Clark Foam, “The short version of my explanation is that the state of California and especially Orange County where Clark Foam is located have made it very clear they no longer want manufacturers like Clark Foam in their area.”

To me there are many questions and I am skeptical because of his big government, large company bent.
Stand up for America! - Seeing Red

Obama State of the Union transcript: Full text

Passages with the word MANUFACTURING
An America that attracts a new generation of high-tech MANUFACTURING and high-paying jobs.

Let’s remember how we got here. Long before the recession, jobs and MANUFACTURING began leaving our shores. 

No, we will not go back to an economy weakened by outsourcing, bad debt, and phony financial profits. Tonight, I want to speak about how we move forward, and lay out a blueprint for an economy that’s built to last – an economy built on American MANUFACTURING, American energy, skills for American workers, and a renewal of American values.
This blueprint begins with American MANUFACTURING.

So we have a huge opportunity, at this moment, to bring MANUFACTURING back. But we have to seize it. Tonight, my message to business leaders is simple: Ask yourselves what you can do to bring jobs back to your country, and your country will do everything we can to help you succeed.

We should start with our tax code. Right now, companies get tax breaks for moving jobs and profits overseas. Meanwhile, companies that choose to stay in America get hit with one of the highest tax rates in the world. It makes no sense, and everyone knows it.

So let’s change it. First, if you’re a business that wants to outsource jobs, you shouldn’t get a tax deduction for doing it. That money should be used to cover moving expenses for companies like Master Lock that decide to bring jobs home.

Tonight, I’m announcing the creation of a Trade Enforcement Unit that will be charged with investigating unfair trade practices in countries like China. There will be more inspections to prevent counterfeit or unsafe goods from crossing our borders. And this Congress should make sure that no foreign company has an advantage over American MANUFACTURING when it comes to accessing finance or new markets like Russia.

Now you need to give more community colleges the resources they need to become community career centers – places that teach people skills that local businesses are looking for right now, from data management to high-tech MANUFACTURING.

Of course, the easiest way to save money is to waste less energy. So here’s another proposal: Help manufacturers eliminate energy waste in their factories and give businesses incentives to upgrade their buildings. Their energy bills will be $100 billion lower over the next decade, and America will have less pollution, more MANUFACTURING, and more jobs for construction workers who need them. 

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