Friday, February 24, 2012
Obama hopes to boost US manufacturing - possibly by selective tax relief. see http://www.forbes.com/sites/deanzerbe/2012/02/10/obama-and-tax-breaks-for-manufacturing-good-ideas-but-manufacturers-not-taking-advantage-of-current-tax-breaks/ for example.
Prediction:
1) we will see a lot of firms reclassifying what they are doping as manufacturing rather than services
2) we will see some splitting off of manufacturing and service components so the former can take advantage
3) there will be much argument about statistical clasisfication as manufacturing or otherwise. (an extreme case - what about assembly of components that takess place in a nominally retail environment? what about the manufacture of fast food?)
Prediction:
1) we will see a lot of firms reclassifying what they are doping as manufacturing rather than services
2) we will see some splitting off of manufacturing and service components so the former can take advantage
3) there will be much argument about statistical clasisfication as manufacturing or otherwise. (an extreme case - what about assembly of components that takess place in a nominally retail environment? what about the manufacture of fast food?)
Labels: services manufacturing taxes
