@georgeob1,
georgeob1 wrote:
Cycloptichorn wrote:
So, let me ask you - why relocate to Reno? Why didn't you just go right out of the country? After all, Reno tax and labor laws are amazingly high and restrictive compared to other countries. So what stopped you?
Labor laws, associated taxes on labor and Corporate taxes on profits are MUCH lower in Nevada than California. We could still serve the same clients, providing the same services (engineering & science) and do so with much higher margins. Moreover, we have found we can get equally talented people who are often much more adaptable and better motivated than here.
Sure; but by your construction you could be saving even more money and providing the same services by moving out of the country completely. After all, if higher taxes are the deciding factor, why not just keep going?
I think the answer to that question will show you why few companies will relocate out of America.
Quote:Cycloptichorn wrote:
If your company decided that they could make more money by relocating to another country completely, would you support this?
Depends on the country and whether I would like to live there. We are planning to open an office in Dubai though.
I think you have finally hit on the number one reason that American companies will not relocate overseas in any large amount: those who run them do not wish to leave America. There are perks to locating one's company here which are difficult to enjoy in other regions of the world.
This is why I wish to call the bluff of the Corporations: remove tax breaks for offshoring, remove loopholes allowing them to hide funds in other countries, and dare them to leave. I am willing to be that the vast majority will not do so.
I am unswayed by the idea that the alternative to taking crappy, low-wage, low-benefit jobs is working at McDonalds. I think this is a bit of exaggeration on your part.
Is your company opening an office in Dubai, in order to attempt to move your home base there and hide from taxes, a la Halliburton? I hope not. That would be a deeply dishonorable thing to do and I would like to think that you wouldn't be party to such a thing.
Cycloptichorn