It sounds like Barack Obama is proposing something that might actually make sense: closing a tax loophole that allows American companies to claim a deduction when they outsource American jobs. Well, it’s the though that counts.
Taking away incentives to ship American jobs to cheap foreign labor is a great idea, but what Obama is planning doesn’t go far enough. The problem is, that even if you tax these companies at the maximum rate, the labor in countries like India is so cheap that it would still be a bargain to outsource. India realizes that, and although they tossed a few stones at Obama, they don’t seem that worried about a decline in American jobs coming their way.
After all, many highly skilled Indian workers are American schooled and trained, and are every bit as talented as their American counterparts. They’ll just work for peanuts in India though. Peanuts to us, but over there, 10 or 15 thousand dollars a year is living pretty well.
How about this idea: take the worst outsourcing offenders, see what industry they’re in, and then take that stimulus money and create American industry, American jobs to compete with the outsourcers. Subsidize them long enough to cripple-or at least send a come on back if you know what’s good for you message to these companies. Competing with someone making a dollar a day is not competition. It’s exploitation. Time to play hard ball.