Jonny5
Senior Member
It's a simple calculation.Why don't these spineless pricks ever call these companies' bluffs? Go ahead, let them pull out. Lululemon is not delivering some highly technical stuff that no one else in the country is capable of making.
They pay X dollars in corporate taxes to Canada and B.C..
If those taxes lost are less than a subsidy required to let them stay then you pay the subsidy.
The problem is there's plenty of US State Governors happy to pay a larger subsidy to have the business move there which gives that State a future tax stream, even if it means they lose money in the short term.
Yeah, it's the proverbial race to the bottom, and yeah it's all connected to prices and inflation and taxes and it's complicated, but also yeah if you simply say "fuck you just move" then they will move because almost zero consumers really care about where shit comes form, and then Canada will reach the bottom first, and [whispering] Canada is kind of on that trajectory already.
Reference: the TV and movie industry
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