Firms Move to Fight Overseas Profit Tax (tax break for outsourcing jobs)

[antigop]

http://online.wsj.com/article/SB123897085163290813.html

In one of the biggest battles between the business community and the White House, corporate lobbyists are intensifying efforts to block an Obama administration proposal to raise taxes on overseas profits. Executives say the measure, which could cost U.S.-based multinationals $100 billion over the next decade, would hamper economic-recovery efforts.

In recent days, groups including the Business Roundtable, the U.S. Chamber of Commerce, the National Association of Manufacturers and the National Foreign Trade Council have helped form a lobbying coalition called Protect America's Competitive Edge that is devoted specifically to the issue. A letter sent to Congress last month opposing the plan was signed by 200 trade associations and companies, including General Electric Co., Intel Corp., International Business Machines Corp., McDonald's Corp., Merck & Co. and Microsoft Corp.

But even if businesses succeed in holding off the plan, they are likely gaining only a temporary respite. While prospects for quick action on the idea this year are dimming, it is likely to become a central element in a broader tax overhaul the White House is planning, according to business lobbyists and legislative aides, as the administration searches for revenue to cover the costs of some of its big initiatives.

At issue is a longstanding feature of American tax policy that allows multinationals to avoid U.S. taxes on much of their overseas earnings, as long as the money remains invested offshore. Many companies use the rule to park overseas earnings in tax-haven countries for years.

Corporate defenders of the policy say it is a sensible way for the U.S. to level the global playing field for American firms, because many foreign governments don't tax their companies' overseas earnings.

But critics of the U.S. provision, known as deferral, say the policy encourages American multinationals to add facilities and jobs overseas rather than expanding at home. They also say it contributes to the inefficiency of the U.S. tax system, making it more difficult to raise the money the government needs. By some estimates, as much as $800 billion in U.S. companies' earnings is currently held offshore.

[Skittles]

1. nail those treasonous bastards

[antigop]

2. Obama and the administration need to stand firm -- this was one of his campaign promises

He said he would eliminate the tax breaks for outsourcing jobs.

[OhioChick]

8. Sure was. Now it's time to make good on those promises.....

Courtesy of acmavm


Obama opposes outsourcing of jobs
Agencies Posted: Jun 28, 2008 at 1133 hrs

Washington, June 28: Taking a tough stand against outsourcing, the presumptive Democratic nominee Senator Barack Obama said that the choice is between giving tax breaks to companies that ship jobs overseas or give benefit to those corporations that keep jobs domestically.
"We can keep giving tax breaks to companies that ship jobs overseas, or we can give tax benefits to companies that invest right here in New Hampshire," Senator Obama said at a joint appearance with Senator Hillary Clinton in Unity, New Hampshire.

"We can have a tax code that rewards wealth and hands out billions of dollars more to big corporations and multimillionaires. Or we can provide a USD 1,000 tax cut to 95 per cent of families in America, start rewarding work and not just wealth, and eliminate income taxes for seniors making USD 50,000 a year or less," Obama said, adding that's an agenda for change that we can believe in. That's the choice that we can make in this election.

"We can allow millions of Americans to work full-time but still not make enough to support their families, or we can raise the minimum wage, index it to inflation, and ensure that hard work pays off in America," the Illinois Senator said.
http://www.expressindia.com/story_print.php?storyId=328...
___________

Obama vows to stop outsourcing, India Inc irked
started by TruthSeeker 7 mnths ago

Washington/New Delhi: In remarks that are bound to raise hackles in India, Barack Obama made a strong anti-outsourcing pitch after securing the Democratic Presidential nomination vowing to end tax breaks to companies that ship jobs overseas if elected to office.



Playing to the gallery on the hot button issue of outsourcing in his acceptance speech, Obama kept up with the rhetoric on the subject that has been a staple of Democratic campaigning and went on to spell out what he would do as President on the front.



"Unlike John McCain, I will stop giving tax breaks to companies that ship jobs overseas, and I will start giving them to companies that create good jobs right here in America," said Obama, who has been fiercely opposing outsourcing.

Source: http://www.ibnlive.com/news/obama-vows-to-stop-outsourc...
_____________

Obama vows to award US cos that stop outsourcing
Agencies
Posted online: Sep 04, 2008 at 1250 hrs

Washington, September 4:US Presidential hopeful Barack Obama once again touched on the ticklish issue of outsourcing and while vowing to end tax breaks to companies that ship works overseas conceded that all lost jobs could not be redeemed.

Promising to retain as well as create more jobs for the Americans, the Democratic nominee said while all lost jobs cannot be redeemed, further movement can be halted by giving incentives to companies investing in the country.

"Not all jobs that have left are going to come back. We can stop some of them that are already leaving by stopping to give tax breaks to companies that are shipping jobs overseas and saving those tax breaks for investing in plants and equipment right here in the US," Obama said at a campaign stop in Ohio.

http://www.financialexpress.com/printer/news/357238 /
______________________

Outsourcing critics worry about Obama advisors

By Krishna Kumar V. E.
December 10, 2008


Outsourcing critics worry about Obama advisors

Critics of outsourcing who saw in Barack Obama their saviour, are now worried that the President-elect of United States may tone down his commitment to stop sending jobs offshore because of pressure from his advisors.

Noted Wall Street Journal writer William J. Bulkely believes that the reason for such a meltdown in Obama’s position could be that as many as 17 members of his transition economic advisory board are corporate honchos who have a long history of outsourcing.

Bulkely quotes Ron Hira of the Rochester Institute of Technology and author of the famous book ‘Outsourcing America’ as saying that the Obama team is yet to take up the issue of white-collar outsourcing very seriously.

The President-elect had promised to stop tax breaks to companies that shifted jobs overseas, a position that he still holds but could be forced to change giving the diverse opinions held by members of his transition team.

The blog says that almost every member of the advisory board that has been involved in corporate America has been connected to outsourcing. The author goes on to say that the companies where these advisors worked earlier are refusing to comment now.
http://www.bpowatchindia.com/bpo_news/obama_outsourcing...

[Hawkeye-X]

9. In fact, they should do a 300% tariffs on products imported from outsourced jobs

that could have easily been done in the United States.

Force the companies to cut off the outsourcing to ensure profitability.

The #1 reason for outsourcing is obvious: less $ to pay the workers.

Fuck it. The companies who sell outsourced crap must pay the 300% tariff first on EACH product, so they can't sell shit without raising the price by 600% to get any return for their investment.

Therefore, making the imported products unaffordable, and EU should follow suit as well.

Sanction Indian companies by 10,000% for taking US jobs away from the US when it can be done here.

Same for manufacturing jobs by the Big 3. Let them learn a hard lesson.

And FINALLY, give them more incentives (like a tax break) by cutting off outsourcing and HIRING the same amount of qualified people to do the job. Also, ban H1-B for life on those companies that have outsourced, and returning back to the United States to sustain profitability and force them to hire Americans to do the job that they are EMINENTLY qualified for.

Also, the U.S. Government should take out ALL health benefits from the companies and add a employee tax (of say, 5%) from EVERYONE who has a job and that tax goes directly to the single payer health care program (aka universal health care), and taking the insurance companies out of the game permanently - let them stick with life, auto, fire, and others - it's just the health care that they just keep fucking up on.

Hawkeye-X

Hawkeye-X

[Igel]

12. I agree.

And the most important thing--do *not* include any price increases in the inflation rate, to avoid having COLAs automatically increase.

[stillcool]

10. I think he needs help from Congress...

or can he just decree this?

[bkkyosemite]

3. " But critics of the U.S. provision,

known as deferral, say the policy encourages American multinationals to add facilities and jobs overseas rather than expanding at home."

That's what they have already been doing taking our jobs overseas and blaming on the economy or the WH.....they are trying to black mail us.

[OhioChick]

4. I figured I'd see Micro$oft in there....

Tax the bastards! This was promised to us.

No one is expanding at home, anyway! :grr:

[antigop]

6. And IBM, of course! N/T

[OhioChick]

7. IBM was a given...

I could think of MANY others, as well.

[ChromeFoundry]

5. I'll believe it when/if it passes

If this "Overseas Profit Tax" doesn't pass, Obama will be a one term president.

[stillcool]

11. I think he'll be a one-term President..

anyway. Congress will not be helping him, and neither will the American people.

[Joe Chi Minh]

13. Big Blue is feeling blue. No, don't laugh...!