US based corp w/plants in MX (assumption)

[AZ-Tax]

Assume I am a CEO of a U.S. based Corp headquartered in the U.S. This Corp has manf plants in MX. The plants were moved to MX due to the Corp reduced its manf overhead cost by 50% including labor, delivery etc. The Corp profits increased and I (CEO) got a 25% raise to $3 mil a year. I (the CEO) am for the U.S. congress, senate and the president to sign a bill holding my personal Fed income tax rate at current levels or better yet, decreasing my personal Fed income tax rate but NO way am I going to move my manf plants back to the U.S.

I (AZ-Tax) only prepared S-Corps and never a C Corp so I am by no means a professional in this area but I assume this Corp will need to file a U.S. Corp tax return. What about paying any MX Corp income taxes? Seems to me if the 25% raise the CEO received was due to cutting overhead, what financial incentive(s) would the CEO have to move the plants (jobs) back to the U.S. If there is one, I missed it.

[erchess]

Reflections

The CEO in question is paying here in the US tax rates lower than our historic norms and lower than what would be due if he or she lived in another developed nation. Therefore i believe that his tax rates should be increased to at least Eisenhower like levels.

I agree that the CEO in question has no incentive to move the jobs back into the US. One thing I believe should be done is to change the law so that none of the costs associated with the plant in MX lead to US tax savings of any kind. Heck there could even be a special surtax on those expenses but I concede there are limits to how far we can go in this direction without having some businesses decide that its just too expensive to be a US based corporation. To fight that we could put tariffs on goods coming in from overseas but for one thing this would require abrogation of existing trade treaties and for another it would lead to matching or greater tariffs on US goods going into other countries. (On the other hand the latter is already a problem and our government does not do as much as it should to fight this practice.)