Hosts Matt Lock and Tudor Dixon discuss US companies moving back home with guest Tax Expert, Julio Gonzalez.
Matt Locke 0:00
It's Memorial Day weekend. They're being patriotic 94% say, hey, I want America first. I want stuff Made in America, I want to buy American. But in the end, when everything goes back to normal, when the disease goes away, when we get back to our regular lives, are people going to pay enough attention to what they're buying? So we know what tutor when we don't know the answers. We always bring in our experts. I want to welcome into the program CEO and founder engineer tech services. Julio Gonzales. All right, Julio, you've been listening to what we've been talking about the stock markets up there. They're now back to trading on the floor. We've got optimism. We've got America moving forward by America. It's pretty good, right?
Julio Gonzalez 0:52
It's pretty good. I think that you know, Larry wants to give them immediate expensing on buildings to come back here and also pay for the moving expenses. And, you know, I would disagree. And I've told this to Larry, I've told this to Steve Moore have told us to the administration that giving immediate expensing of real estate to have these companies come back would be a mistake, because it would take 2 trillion from Treasury and really wouldn't have the attendant consequences. I think helping them with the moving expenses is good. I think giving job credits and things like that, that are greatly beneficial to them, but expensing Real Estate's not going to do any benefit for them. And I don't think gives them enough stimulus to come back. We've tried that in the 80s. And it didn't work. And I don't think it'll work again.
Tudor Dixon 1:36
So explain to people why you think that won't work? Would they come here? And then once things get tough, and they have to lower prices leave again, or what is the concern there with property?
Julio gonzalez 1:49
Yeah, I think, you know, the concern always is, you know, having low taxes and less regulation. Like you guys were saying, I think that was the problem that drove them away was the regulations the increasing tax burden. And the ability to inability to really grow under those president regimes. So I think that ultimately, what would bring them back is low taxes like we've done. We did that in tax reform, less regulation, we've done that as well. That's why we've seen a lot of businesses already come back now to encourage them by giving him extra moving expenses. And fire alarm, that's fine. Anyway, I had a, I had to say something, ha ha, and anyway, and that and, you know, just but giving him a, you know, basically a billing to write off I don't think that, you know, moves the needle.
Matt Locke 2:37
So, Julio, you just hit on it. We've lowered the corporate tax rate, we've made a more friendly corporate environment here in America. Is there anything else that Trump administration can do to lure people like apple in the big boys back here to America? Can we repatriate dollars? What would it take?
Julio Gonzalez 2:57
Well, I think you know, we have the Research and Developmen Tax Credit here in the United States that basically is a refund of labor for us manufacturers that manufacture with us employees, and do so with innovation. And I think that's a tremendous tax credit. I think we have to increase that benefit. And that would bring the stimulus enough because the thing is, with the r&d tax credit, they're higher in other countries. And if we made that higher here, I think we would get that traction.
Matt Locke 3:24
So Julio, I gotta ask you a question, because I think we've lost tutor here. So we'll just keep on running. But why is the stock market the way it is today? I do? Yes. Yes. Let's hope the fire alarm did not get her. But why is the market acting the way it is today? Can you give us any insight on why the market is so up today?
Julio Gonzalez 3:44
Well, I think the market thinks that there's a cure pending I think they know that there's a vac there's vaccines, there's about eight and trial right now, six are having tremendous results. There's quite a few behind it. And I think that they feel like this cure is coming much quicker than they anticipated. And as you're saying that in the stock market and seeing that states are opening up, there's good effect with that. But ultimately they think there's a cure on the way.
Matt Locke 4:09
Julio, one last question, because now democrats are dreading what's called a V recovery. Can you tell us what a V recovery is? And why are the democrats dreading it?
Julio Gonzalez 4:21
Well, heavy recovery? Well, I think that the basically, the V recovery is set on the economy and the GDP right, and that the bounce back is coming. I mean, we didn't think I don't think they think that we would get through the recession by August and September, and I say that that's coming, and the victory is coming as well with the economy coming back.
Matt Locke 4:44
Well, I'll tell you what, Julio Gonzalez, thank you so much. When we need the answers, we go to our expert Julio Gonzalez. He is the CEO and founder of and I forgot I forgot the name of your business. Tell us what it is again Engineer Tax Services and listen were hoping Tudor is safe.
I know I'm distracted. I'm all distracted. Julio, Engineer Tax services. Thank you so much Julio for stopping by America's voice live.