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No sales tax in the state it's manufactured????
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Ron Komorowski
rjlinnovations

Am I onto something here? Suppose we had a tax law…state by state if you have over 50 employees and are a manufacturer, and atleast 50% of your business is out of state (need that in there so states don’t go broke)…your product is sales tax exempt all the way through to end user.

Think about it. Michigan might come back in 5 years…and many other states. There are many incentives in place now to attract manufacturing jobs. In the end it would help the state collect more taxes. This in turn would help U.S. manufacturing…thus building U.S. manufacturing “numbers” that will help the manufacturers become more competitive on exports.

The U.S. government can’t do this, but states can…and all will want to because they will build their state and pull in jobs.

What do you think? I know people in the right place in Governor’s offices and the White House to tell this too.

Will it work? Good idea? We just have no choice….either create U.S. jobs or lose the country. The economy has taken another severe turn down in the last few months…don’t believe me…you will see on the news shortly. What happens “on the streets” hits the news…and Wall St. in 3 to 6 months

Ron Komorowski
Inventor of Handi-Straps
www.handi-straps.com

posted February 28, 2010 14:10 (
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Mary Kisko
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Ron,

I like your tax-free idea. Will it work, I don’t know? I think it would have to depend on how much the U.S. companies would save in taxes. If it became more profitable for the U.S. tax-free companies to manufacture here in the U.S. as opposed to outsourcing then I think your idea will work. I also believe that the cultural attitudes will also have to change. There must be a strong movement to purchase U.S. products. A cultural movement is difficult because the United States as you know is a multicultural society. In my experiences, I think some citizens that have migrated here don’t share the same passion for the country as the U.S. born citizens do. They may make a living in this country, but they don’t love this country. Finally, in regards to our future economy you are right we have to make some changes and create jobs in order to preserve this country and it’s American Dream. Tax-free U.S. Manufacturing is worth further exploration and it could turn out to be precisely what needs to be done.
posted March 03, 2010 16:22 (
)
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Ron Komorowski
rjlinnovations

Mary…this idea won’t work after thinking about it because most manufacturers do not manufacture the final product. They could not benefit from a sales tax break as much….maybe it might trickle back some, but not enough.

For years I have said we MUST subsidize U.S. manufacturing. It is the only way. It will be a loss on paper for the Federal gov’t but we just MUST. What else can we do? Have more people sitting at home collecting free money in a sense from unemployment? I said it for years. I’ve talked to Barrack Obama’s Chief of Technology in person about this and he was trying to get me to pitch some of my ideas in person to the President on this subject. Still have to follow up on that.

One good thing, finally. All the lawyers in this country ready to sue manufacturers, employers and everybody else has caused all kinds of quality and safety regulations second to none around the world.

The U.S. products are known around the world as utmost quality compared to the pool of other countries and their products, but we are costly.

Lately, with the case of bad products like tainted baby formula, remember those Chinese tires making many crash a few years ago? Toxic toys, contaminated sheetrock, bogus medications, cars that don’t stop when you need them too…all of a sudden the GREAT regulation, inspections, precautions in U.S. manufacturing will finally see a bright day…you’ll see.

5 years ago all thought I was nuts promoting U.S. manufacturing and I believed in it. Now today people tell me I had the vision first. U.S. manufacturing is coming back.

Look what happened. The Feds subsidized U.S. automakers. Right now they are just so happened to be poised as the greatest car makers in the world once again. GM was the largest some years ago. Ford is in FINE shape right now as the stocks have increased 600% since the bailouts.

We have no choice. All great countries in history became great from making stuff and selling to the rest of the world. No country was EVER built by slick salesmen just selling stuff. They try that on some of those poor Carribean Islands. No industry and try to make a country by selling tourists stuff…and they sadly live in shacks and are the poorest in the world.

A country must have industry….not made up of only Wal-Marts helping foreign nations build their industry. We have to subsidize manufacturing somehow. In the long end it will pay off…or we can just pay everyone on unemployment…til the country is completely broke and the economy finally crashes and the dollar is worth more if you burn it to keep warm.

This is why I manufacture here. I don’t think I have a choice! Yes, you pay me $60 for my product when it could cost you $30 if you made it in China BUT my product will NEVER break from defects or the stitches unravel because of our safety control. I have actually chosen to follow Federal regulations for fall protection harnesses which people stake their lives on. I did this for the quality. My manufacture makes my product with the same materials and procedures as their fall protection equipment.

My product lasts a lifetime…and if you have any complaints…you call us, we listen…and know English! You don’t have to learn a foreign language to complain!

Ron Komorowski
Inventor of Handi-Straps
www.handi-straps.com

posted March 04, 2010 06:08 (
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Paul Matthews
poobalus

I like it.. It should just be a simple state law:

No state sales tax on items produced in state.BUT

Very GREEN..very GREY.. Where is the line between assembled/manufactured begin and end…arghh the politics….

Nothing is ever simple..

The best way I can think of to do it is as follows:

1.) Create a new sales-tax free category for local goods (like food or clothes)

2.) Let local companies apply and get accepted or rejected according to predetermined requirements and eligibility. Requires a complete new division of government to be established. (Researchers, Analysts, Directors,and Board Members).

Any thoughts?

Paul Matthews

posted March 04, 2010 09:54 (
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Ron Komorowski
rjlinnovations

Paul….the Consumer Protection Agency has strict guidelines you must conform to if you wish to claim made in the U.S.

If you claim made in the U.S. and you do not reach the percentages required then you have committed fraud and are in big trouble.

I will call the people I know in a few different states Division of Economic Development and run the brief idea by them. Much would have to be pounded out to see if it mathematically is worth it.

The line used to be 51% made here is enough to be called made in the U.S. but the rules are not that simple anymore and are listed on the CPA website.

posted March 04, 2010 13:12 (
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Mary Kisko
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Ron,

I admire your integrity and your strong conviction to manufacture your Handi- Straps product here in the U.S. Being willing to make less money because you believe in creating and keeping employment in the U.S. is profound. Not many people are willing to make that financial sacrifice especially when they are just starting out in business or creating a new product. When I had my small company, unlike you I had my product manufactured in Mexico, which was owned by a company in California. I chose this company because I had very little capital to start with. I was turned down for a business loan. Plus, I thought retailers would show a greater interest if I had a lower wholesale price. They could mark up the retail price or lower it and still make a profit. I thought that this would improve my chances of getting my product picked up. Regardless, I appreciate you making us think about our wonderful country and the benefits of U.S. manufacturing. “Brighter Days” for U.S. manufacturing is one of your predictions that I would like to see happen!
posted March 04, 2010 17:46 (
)
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Alberto Contreras
quantummechanics

Ron

I believe your tax idea is a good one that should be given careful consideration to me the
benefits would be substantial.

N.Y.C. born and raised I have seen first hand how manufacturing companies first moved
out of the city then the state and finally the country.

I applaud your patriotic stance and will look to emulate it in my up and cumming projects.

On a side Note: It is my firm opinion that Handi-Straps should be endorsed by the construction industrys world wide and even mandated to all heavy material construction workers.
Respectfully
A.M.C.

posted March 05, 2010 10:41 (
)
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Ron Komorowski
rjlinnovations

Thanks Alberto for your compliments and also your patriotism.

As far as Handi-Straps, me and the concept were just soaring around the world getting all kinds of recognition before this economy got bad. We were moving like lightning with recognition in colleges, medical experts and Federal gov’t agencies…you name it…amazing how all has slowed now though.

So your from NYC. I was born in the Bronx…grew up there. I was always impressed how they had a great incentive to rebuild the South Bronx after land owners burned down the buildings because the insurance paid more than if they sold because the area got so bad for value with all the crime. They offered companies five years tax free if they moved the company into the South Bronx. This worked very well and mostly manufacturers moved in.

I see you agree…we just have to all as a whole think of rebuilding America’s manufacturing base. It is not fair to the rest of the world if we are too lazy and won’t do our part making stuff for the world to enjoy or help. ALL countries need to make stuff! I see it as an unwritten duty for all.

In the U.S. we have just became too much of wheeling and dealing business people. What happened to the great pride of hard work making stuff? Do you know, I always had great talent with ideas but my main job for a long time was building houses and doing big renovations because I liked it! I was getting to actually build my ideas and actually help build towns…help building America…and felt damn good after a day of hard physical labor while seeing my creative thirst quenched.

We need my mentality to spread. It’s alot easier just moving your mouth selling stuff than moving your whole body making stuff….but that pride…that pride of making stuff for all to enjoy…that’s what built America!!!!…and I want to be a part of that!

Nobody ever was known for their bank account alone around here after they are dead…how many chips they had accumulated. They become remembered for what they have made for all to enjoy.

I will be remembered for the Handi-Straps invention and my patriotism trying to create jobs…NOT for how much money I made. No inventors are remembered for their bank account.

posted March 05, 2010 15:35 (
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Tim Montgomery
tjm
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Ron: It’s amazing everybody wants their new invention products in all the big box stores , but everybody wants them to be made off site for 3cents cheaper ,and then complain when there sitting home unemployed!!!!!
posted March 05, 2010 15:51 (
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Ron Komorowski
rjlinnovations

Tim…the good news is…and you heard it here first. The big box stores with their 100% markup and monopolies are not the future.

I believe the mom and pop shops and main street are not dead but live, well and coming back on the internet!!!! This creates more direct sales so manufacturing costs don’t have to be so low!!!!

This way, this theory, the manufacturing costs can be even 50% of the retail price…maybe even more. The big box retailers make it so the manufacturing cost can’t be more than 20% of retail and that is not fair…and alot worse than it ever was. Never has the ration been so low.

I believe consumers will choose the great variety on the internet more and more. Who wants the same lamp that everyone else has that everybody bought at Wal-Mart…where they got 10 different lamps to pick from because less choice means more volume and less cost for them.

I’d rather pay the shipping and pick off the net something unique. The shipping offsets the time wasted walking isles, finding parking and the gas to get there.

I believe the future of shopping will lean more and more to the computer screen and less to walking the floors of the Wal-Marts. This gives inventors and manufacturers more of a chance to sell direct so the big box stores don’t make all the money just for distribution. The consumer then gets more “product” or quality for their money instead of paying for Wal-Mart’s distribution system.

Order my product…you get mostly the value of the manufactured product and you pay some for us to profit. No expense for distribution. Yes, it is priced high but that is the way it is with small volumes for now but the quality is unsurpassed where nobody can complain of price when they receive the product.

Products can be made in the U.S if we bypass some of the salesmen and sharpen up the distribution systems. I may never need big box retailers with Handi-Straps. I might go right around them, and that will cut unnecessary distribution costs. I may be also inventing a new system of marketing a product…well becoming the first to be very successful at it.

posted March 05, 2010 16:12 (
)
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Alberto Contreras
quantummechanics

Ron you asked an important question in your post to me, I don’t have the answer but will leave this link that I found quite interesting perhaps you and EN will also find it interesting and thought provoking as well.

“In the U.S. we have just became too much of wheeling and dealing business people. What happened to the great pride of hard work making stuff? Do you know, "

Historical Context of the Work Ethic

http://www.coe.uga.edu/~rhill/workethic/hist.htm

A.M.C.

posted March 08, 2010 18:36 (
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