Tax break for offshoring?

[Meadmaker]

I'm feeling curious, but lazy.

Kerry repeated one of the mantras of his campaign last night. American workers should not have to pay to oursource their own jobs.

What's the real story on this tax break for companies moving jobs overseas? I don't think any congresscritter would support "House Resolution 1023: An act to move jobs to India and get a tax break for doing it."

I am assuming that there is some truth to the charge, but how much?

 

[SlippyToad]

I'm feeling curious, but lazy.

Kerry repeated one of the mantras of his campaign last night. American workers should not have to pay to oursource their own jobs.

What's the real story on this tax break for companies moving jobs overseas? I don't think any congresscritter would support "House Resolution 1023: An act to move jobs to India and get a tax break for doing it."

I am assuming that there is some truth to the charge, but how much?

As I understand it, we originally supported corporations that made jobs overseas in Europe during post WWII efforts to get their economies back on their feet and rebuild their cities. That was obviously a very long time ago, and that rationale is gone. We are no longer an emerging superpower, but a mature superpower, Europe's economy is post-industrial and needs no more help from us, and the entities that are benefitting from this aren't really playing that benefit back into our economy. However, business doesn't want to end it obviously because it helps them keep labor costs low, and they're too ignorant to realize they're now killing the goose that laid the golden egg.

Since Kerry lost the election, obviously the point is moot, but I'm sure it will come up again in 4 years. Outsourcing is starting to be a major drag on all industries. I don't think another 4 years of wearing us out about terror is going to continue to blind a majority of American workers to the deterioration of their job security.

 

[The Don]

From here:

http://www.factcheck.org/article225.html

The tax break is that corporations aren't taxed in the US on their foreign income. Corporations can employ various tactics to increase this income including internal sales.

 

[Patrick]

Outsourcing is starting to be a major drag on all industries.

It is?? How so?