The View From 1776
The Arsonist Blames the Fire Department
President Obama wants to “slash the tax breaks for companies that ship our jobs overseas.”
- You gotta be a bit crazy to believe in 'progressivism'.
- So, following your logic, Tom, we should give corporations big tax breaks when they send jobs off shore?
- Mr. Jay:
Where have I ever said anything like that?
- Mr. B.
You conveniently leave out the fact that the corporations who shut down US factories and ship those jobs to sweat shops overseas, are simultaneously enjoying big tax breaks!
Tax breaks are great for the corporate bottom line, but if the corporation is totally irresponsible in its behavior as a citizen, why should I pay more taxes so that the Corporations can have a break?
- Mr. Jay:
You may be right that corporations receive big tax breaks in return for moving jobs overseas, but I'm unaware of such tax breaks. Perhaps you can provide details.
It's true that corporations, at least in the past, were not taxed on earnings overseas where local jurisdictions already had taxed them, i.e., there was no double taxation unless those post-tax earnings were repatriated to the United States. But how is it a big tax break for a corporation to pay taxes to a foreign government rather than to the united States, except to the extent that those foreign taxes might happen to be lower than United States taxes?
In any case, I am confident that much higher on the list of motivations for corporations' transferring some manufacturing overseas would be, first, lower cost and often more skilled labor without labor union extortions and featherbedding, and , second, many fewer government regulations.
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