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Senate debates tax increases on companies that move jobs overseas

By Shailagh Murray

The Senate will have a tax cut debate next week after all.

But instead of extending President George W. Bush's individual income tax cuts, the legislation that senators will consider would impose tax increases on corporations that shift operations overseas, costing U.S. jobs.

Senate Majority Leader Harry Reid (D-Nev.) sought to bring the bill to the floor Friday morning but was blocked by Senate Minority Leader Mitch McConnell (R-Ky.), setting the stage for Monday afternoon floor speeches and a Tuesday showdown when Democrats try to override GOP opposition.

Democrats view the outsourcing issue as a big winner with voters because it speaks to the heavy-manufacturing job losses that have devastated communities in Midwest and in East Coast industrial states.

"There is no issue more important to the American people than the outsourcing of jobs, and that's why we're focusing on it," said Sen. Charles Schumer (N.Y.), a member of Democratic leadership. He is among the senators running for reelection on Nov. 2.

One hard-hit state is the 2010 election battleground of Ohio. For instance, Montgomery County, home to Dayton, has seen its manufacturing jobs base shrink to 24,000 jobs from 57,000 jobs in the past 10 years. "This legislation is going to help stop the hemorrhaging," said Sen. Sherrod Brown (D-Ohio).

Sen. Richard Durbin (D-Ill.), also a leadership member, said Democrats decided Monday to stall action on the Bush tax cuts because the current rates remain in place until the end of the year. "We feel there is a greater sense of urgency" in passing the offshore provisions, Durbin said.

Democrats now plan to address the Bush cuts during the lame-duck session after the election. The party is divided over whether to extend all the existing rates, or only those on household income below $250,000 per year.

The Democratic corporate tax bill includes three provisions. One would end tax deductions that companies may take for expenses incurred when they shutter a U.S. operation and shift the work abroad. The second would impose a tax on products once made in the United States but now manufactured by foreign workers. The third measure would provide a payroll tax incentive for companies to create American jobs by shifting overseas operations back to the United States.

Democrats said the bill's estimated price tag is $720 million aover 10 years.

Business groups are strongly opposed to the Democratic proposal, as McConnell noted on the Senate floor Friday morning when he raised a procedural objection to Reid's maneuver, forcing a vote Tuesday.

"The majority has wasted months in this chamber trying to tell the private sector what to do instead of providing certainty to help them make investment decisions," said McConnell. Many U.S. companies, he said, open operations abroad not to dodge U.S. taxes and workplace laws, but to compete in foreign markets.

By Shailagh Murray  | September 24, 2010; 1:24 PM ET
Categories:  44 The Obama Presidency  
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Comments

Why did millions of jobs go overseas in the first place?

Because US Dollar value, lower production costs, slavery and free trade with not so free China.

Because it can. Because we let it.

Because of Taxes ? Sure.

Posted by: akipaloheimo | September 28, 2010 9:03 AM | Report abuse

Why did millions of jobs go overseas in the first place?

What are the key reasons why 371 of the U.S. Fortune 500 companies (as of a year ago according to a Delhi-based magazine)have a presence in India?

The No.1 reason is to avoid high taxes in the US. Federal and state government spending of our income taxes plus local governments' spending of our property taxes are now consuming 44 percent of our nation's GDP, if you look at data on www.usdebtclock.org.

If the public sector (which consumes, rather than produce new income) is now such a large (44%) portion of the overall US economy, the solution is to decrease the income-consuming public sector and increase the income - producing private sector.

Posted by: Kumar-B | September 26, 2010 9:53 AM | Report abuse

One major impetous for moving jobs over seas just gets permanently ignored.

U.S. Companies seeking to do business over seas often are forced to do business through independent subsidiaries in the countries where they want to do business. These companies must have some percentage of ownership of citizens of those companies, often a majority interest. The Technologies that we would otherwise be selling there as products must be given to those countries under license, at which point those countries use the licensed technology to ship ditrectly competitive productrs, essentially stolen from the U.S. back here at ruinously undercut prices. India and China are especially bad about this.

And the "Marketplace" which should be lowering the value of the dollar against these countries currencies, thereby making their products more expensive here and our products there, never seems to work.

And of course these countries have no EPA or OSHA requirements, and no wages and hours legislation, no child labor legislation, and no fair labor legislation.

All of which make U.S. products more expensive than products produced under labor conditions that the West declared illegal a hundred years ago.

Until the playing field levels, we will have to level the cost field with revenue tariffs. Start with an across the board ten percent increase in all imported goods from any foreign country whose labor laws don't at least match ours, and whose Environmental and Occupational Safety laws, and environmental and safety enforcement at least match ours. Bump it up every year or so until our competitors at least require safe working conditions in plants that don't poison the atmosphere and the rivers and oceans.

Make the rates also apply to countries that bar direct participation of U.S. companies from direct participation in business in their country.

It won't change those countries very much, but it will increase our revenues and help defend our products from deliberate economic warfare being waged on them by China, India, and most of the rest of the so called Asian mini-tigers.

Posted by: ceflynline | September 26, 2010 12:29 AM | Report abuse

The United States now has massive unemployment. For 9 years many American jobs have been lost to offshore cheap foreign labor.

I just came across an article that the United States is spending 10 million to aid cheap foreign labor to take more American job.

http://www.informationweek.com/news/software/integration/showArticle.jhtml?articleID=226500202

U.S. To Train 3,000 Offshore IT Workers
By Paul McDougall
InformationWeek, August 3, 2010

Federally-backed program aims to help outsourcers in South Asia become more fluent in areas like Java programming—and the English language.

Despite President Obama's pledge to retain more hi-tech jobs in the U.S., a federal agency run by a hand-picked Obama appointee has launched a $36 million program to train workers, including 3,000 specialists in IT and related functions, in South Asia.

Following their training, the tech workers will be placed with outsourcing vendors in the region that provide offshore IT and business services to American companies looking to take advantage of the Asian subcontinent's low labor costs.

Under director Rajiv Shah, the United States Agency for International Development will partner with private outsourcers in Sri Lanka to teach workers there advanced IT skills like Enterprise Java (Java EE) programming, as well as skills in business process outsourcing and call center support. USAID will also help the trainees brush up on their English language proficiency.

USAID is contributing about $10 million to the effort, while its private partners are investing roughly $26 million.

....................
Great to know the American taxpayers are spending 10 million dollars so more Americans can lose their jobs.

Posted by: bsallamack | September 24, 2010 10:14 PM | Report abuse

Let's look at the $720 million dollar tax in it's three parts:
Posted by: mil1
......................
Let Congress tell American companies that they can not compete for government contract if they offshore American jobs to cheap foreign labor.

Let Congress tell the American banks that they can not offshore American jobs to cheap foreign labor since the taxpayer dollars subsidize their business.

Time to recognize that Americans taxpayers have paid a great deal for the success of American companies. Most of these companies could not survive without the benefits they received or receive from the government and taxpayers of this country. Taxpayer funds built the roads and infrastructure. Taxpayer funds pay to allow the banks to operate. The nations justice system allow these companies to exist in a stable environment where their companies were allowed to grow.

Time to recognize that the wealth of America is jobs and that American companies that simply want to strip the country by offshoring American jobs are of no worth to this nation.

Time to recognize that American companies benefit from the American government and the American people and that they have an obligation to this country.

Posted by: bsallamack | September 24, 2010 8:18 PM | Report abuse

Let's look at the $720 million dollar tax in it's three parts:
Posted by: mil1
......................
Let Congress tell American companies that they can not compete for government contract if they offshore American jobs to cheap foreign labor.

Let Congress tell the American banks that they can not offshore American jobs to cheap foreign labor since the taxpayer dollars subsidize their business.

Time to recognize that Americans taxpayers have paid a great deal for the success of American companies. Most of these companies could not survive without the benefits they received or receive from the government and taxpayers of this country. Taxpayer funds built the roads and infrastructure. Taxpayer funds pay to allow the banks to operate. The nations justice system allow these companies to exist in a stable environment where their companies were allowed to grow.

Time to recognize that the wealth of America is jobs and that American companies that simply want to strip the country by offshoring American jobs are of no worth to this nation.

Time to recognize that American companies benefit from the American government and the American people and that they have an obligation to this country.

Posted by: bsallamack | September 24, 2010 8:16 PM | Report abuse

Let's look at the $720 million dollar tax in it's three parts:

"One would end tax deductions that companies may take for expenses incurred when they shutter a U.S. operation and shift the work abroad."

OK, so this is deduction and can be withdrawn...it also makes sense as we, the US, do not want to have them shuttering a US operation and shifting work...however, will it make the company fold? No qualifiers...see the input below about Huffy bikes. Would Huffy have remained a company, never mind, a US company? Would it not be better to have US courts decide that there was indeed a threat? Why didn't a court think there wasn't a threat....well, did the Legislative think there was? That's what the court interpreted.

"The second would impose a tax on products once made in the United States but now manufactured by foreign workers."

OK, how far back do we go...to when we made shoes and textiles? To when we manufactured TVs, washing machines, frigs? When? We have slowly bled-out manufacturing jobs (and now service jobs) for a century...yes, we have great pay and benefits, just no more jobs. How will this help? And where is the cut off? Congress must convince me that this has some kind of merit--on it's own it gets no jobs back and saves no jobs here and now.

"The third measure would provide a payroll tax incentive for companies to create American jobs by shifting overseas operations back to the United States."

Actually this might be a great idea but I would prefer "a tax incentive" that is a tax break....a payroll break that doesn't do something to weigh the 23 dollar/hour auto worker to the less than a dollar/hour auto worker isn't going look like an incentive.

Add to this the environmental willy-nilly of say India or China, which allows for cheaper plant facilities and straight lack of care about your work force....hard to compete.

Congress is a day late and a dollar short...we need to reduce govt spending and carefully look at a reasonable way to attract and keep the businesses we have. How? Well for a start---baby formula made in the US wouldn't have melamine in it; nor would our dog food....sometimes high end has sales appeal.

Posted by: mil1 | September 24, 2010 6:42 PM | Report abuse

It's not just the minimum wage, although that plays a part. It's also the rules and safety restrictions our government requires. The rich corporations don't want to abide by those OSHA rules but they want to live here and they want to sell their goods and services to Americans.

But guess what, we can't afford them anymore because we're not working anymore.

It's a vicious cycle.

Posted by: MadamDeb | September 24, 2010 6:38 PM | Report abuse

Really---no other country is out sourcing jobs? The global economy isn't a reality, then...

Here is a quote from ITNewslink in Canada in 2007, that might change your mind...

"HEADLINE: TELUS shipping Canadian jobs overseas along with access to customer account information

The Union representing workers at TELUS, Western Canada’s largest phone company, is alarmed at the ongoing loss of hundreds of Canadian jobs to the Philippines and other overseas locations. The Telecommunications Workers Union (TWU) also has grave concerns about customer privacy issues based on the fact that workers outside Canadian jurisdiction are accessing customer records."

As for "reprisals"...it won't be from other countries (did you actually read my post) but from former US companies that declare they aren't US companies any more---then they can ship into the US without reprisal on them...the "reprisal" for us will be the same good, the same service but no US job, no US income, no money to buy the product...

No this TAX isn't a TARIFF but it is like Smoot-Hawley, in that it is a Congressional action that lacks recognition of the fact that as much as you'd like to turn back the clock it can't be done---if you want manufacturing jobs then you need to compete with the world market.

Britain found they had to do in the early 20th century (and couldn't). Russia tried to do it under the Czars but the system was too corrupt (gee, any change there?) and Europe and Japan tried to do it but have no sustainable labor force and too much social support (a upside down V with active workers on the bottom and retired on top). So will we if we don't understand that our immigration force should be a legal one that adapts to an American culture and moves forward---but we can't be making cars for 23-30 dollars an hour when China can make them 250 dollars A MONTH.

Posted by: mil1 | September 24, 2010 6:20 PM | Report abuse

YOU JUST GUARANTEED THAT EVERYONE'S TAXES WILL GO UP. THAT IS NOT A WINNING ARGUMENT!!!!!
Posted by: 54465446
====================

Unless you are an outsourcing corporation, your taxes aren't going up. The corporation might increase the cost of their goods or services, but that's not tax to you. It would be higher prices, if you purchased from that corporation. But not higher taxes for you.

Posted by: MadamDeb | September 24, 2010 6:16 PM | Report abuse

Outsourcing did not just start in 2001. That was when white collar (tech) jobs started being outsourced to English-speaking countries. Before that, many industries from Ohio and other "Rust Belt" states closed down in favor of manufacturing jobs in China, South America, etc.

Radio Flyer, our little red wagon of childhood, is now made in China, for example. As for bicycles, according to the Huffy Wiki page:

"Huffy Bicycles had a manufacturing and assembly facility in Celina, Ohio, at one time Celina's largest employer. In 1996, the bicycle division received a major blow when U.S. courts ruled that surging imports of low-cost, mass-market bicycles from China did not pose a 'material threat' to the last three major U.S. bicycle manufacturers - Murray Inc., Roadmaster, and Huffy.[1] In 1999, after it became apparent that continued U.S. production of low-cost, mass-market bicycles was no longer viable, Huffy closed down all remaining U.S. bicycle manufacturing operations. Murray and Roadmaster soon followed suit."

And this says nothing about the manufacturing of major appliances and almost all clothing. Plus much more.

However, I, like many other high-tech workers, was not fully aware of what that outsourcing could do to American jobs. Until it hit the company(ies) I worked for. (I was one of those people who had to guide the new department in our company's new office building in Hyderabad.)

It's a harsh reality, and we let it happen while we enjoyed the 90's.

Posted by: MadamDeb | September 24, 2010 6:09 PM | Report abuse

Finally a little protectionism - with any luck the next step will be setting the tariffs at a level that will make it economical to manufacture "stuff" in the U.S. - we certainly have no shortage of willing workers.

Posted by: shadowmagician | September 24, 2010 6:03 PM | Report abuse

Smoot-Hawley anyone?

Posted by: mil1
.......................
Get off your bandwagon.

This has nothing to do with tariffs.

An American company fires a skilled American worker and replaces that worker with cheap foreign labor.

All of a sudden the world will not come to an end if American banks had Americans doing customer service instead of Indians with poor English accents, or if Americans were handling the computer systems of American banks instead of Indians.

There will be no reprisals from the Russians or any other nation if the American government does not allow American companies to simply offshore American jobs to cheap foreign labor in India.

The Canadians do not offshore Canadian jobs to cheap foreign labor nor does any other English speaking nation.

Posted by: bsallamack | September 24, 2010 6:00 PM | Report abuse

Smoot-Hawley anyone?

Sort of in reverse (Asia not Europe) and on moving the industry out instead of taxing the goods coming in...but in essence for the same reason--to protect American business interests; only this time it's actually to protect American labor interest.

It didn't work then and won't work now---even as a reversed idea.

To quote Brian Trumbore of StocksandNews.com:

"The business reality of Smoot-Hawley was far worse. 1,028 economists had earlier petitioned President Hoover to veto the bill, but with enactment, tariffs hit all-time levels on some 70 agricultural products and 900 manufactured items. The economists had warned that S-H would raise prices to consumers, damage export trade, hurt farmers, promote inefficiency and promote foreign reprisals. As to the issue of increased prices, you saw...that consumer prices actually collapsed in the years 1930-32...

As for foreign reprisals, nations were outraged. Historian Richard Hofstadter called the tariff act, 'a virtual declaration of economic war on the rest of the world.' Within two years, 25 countries had retaliated and U.S. foreign trade took a huge hit. America had exported $5.24 billion in goods in 1929 and by 1932, the total was just $1.6 billion...."

This is about what will happen if we attempt to tax American companies....they will simply leave and stop being "American"; then all the things listed above...price changes, lack of jobs, and perhaps even retaliation in the form of not needing to trade with the US...this can be the possible outcome.

But hey, who out there actually knows that it wasn't the stock market that caused the Great Depression?

Posted by: mil1 | September 24, 2010 5:49 PM | Report abuse

Note to folks who are commenting about "shipping jobs overseas" -- The World Bank determined that America's effective tax rate is about 28%. Most developed countries are set at under 17%.

Now: Imagine you owned a company....

Posted by: npsmith
.................
The United States is the only nation allowing the offshoring of American jobs to cheap foreign labor.

There are advanced nations with higher tax rates than the United States. None of these nations would allow companies in their nation to simply offshore the jobs of their citizens.

Time to recognize that there is an obligation of the government to not allow American companies to turn this nation into a third world nation without jobs for Americans by sending American jobs offshore to cheap foreign labor.

Posted by: bsallamack | September 24, 2010 5:49 PM | Report abuse

Note to folks who are commenting about "shipping jobs overseas" -- The World Bank determined that America's effective Corporate Tax Rate is about 28%. Most developed countries are set at under 17%.

Now: Imagine you owned a company....

Posted by: npsmith | September 24, 2010 5:43 PM | Report abuse

The exodus of jobs started at least 12 years ago. Where was Congress then with the additional taxes for companies going overseas but profiting in the US? All of them, either party, were busy taking contributions from the increasingly profitable companies.

Posted by: Georgetowner1
..................................
This started in 2001 and it is time for Americans to stop it.
..........

Bush Supports Shift of Jobs Overseas
February 10, 2004

The loss of work to other countries, while painful in the short term, will enrich the economy eventually, his report to Congress says.

WASHINGTON — The movement of American factory jobs and white-collar work to other countries is part of a POSITIVE transformation that will ENRICH the U.S. economy over time, even if it causes short-term pain and dislocation, the Bush administration said Monday.

The embrace of foreign outsourcing, an accelerating trend that has contributed to U.S. job losses in recent years and has become an issue in the 2004 elections, is contained in the president's annual report to Congress on the health of the economy.

more --
http://articles.latimes.com/2004/feb/10/nation/na-bushecon10

Posted by: bsallamack | September 24, 2010 5:39 PM | Report abuse

Note to folks who are commenting about "shipping jobs overseas" -- The World Bank determined that America's effective tax rate is about 28%. Most developed countries are set at under 17%.

Now: Imagine you owned a company....

Posted by: npsmith | September 24, 2010 5:37 PM | Report abuse

Now instead of just moving lower skilled jobs overseas Obama and the Congress will incentivize the companies themselves, their tax base, and the wealth and white collar jobs to move overseas. Obama and the Democrats are unfriendly to wealth, business and jobs.

Posted by: ELF2
....................
Why do so many Americans live in a vacuum?

The jobs being offshored to cheap foreign labor are the white collar jobs.

The business plan of American companies is to offshore any American job that involves using computer technology in an office or laboratory.

This runs the full gamut from jobs that involves college degrees to customer service.

American law firms are even offshoring work that was done by new lawyers.

There is no more talk about all the jobs for Americans with electronic medical records of Americans since there is recognition that these jobs would be offshored just like the jobs involving the banking records of Americans.

And the plan for American companies is to put all those data centers in India as they push for cloud computing.

Time for Americans to wake up since long term massive unemployment be permanent in this country with the offshoring to cheap foreign labor of all of the jobs of the 21st century.

Posted by: bsallamack | September 24, 2010 5:35 PM | Report abuse

But, Why is The Anti-Christ Obama Destroying America. If you truly want to know what is going on; Then you will have to accept these things as the TRUTH. Once you understand the following things; All things will be understood. So I tell you Obama is Satan on Earth, Lawless One, or what ever else you want to call this Demonic Figure. His words describe him, He is a False Hope, If you listen to him you will love him. He carries a Bow without an Arrow. He will conquer all through his speech, his false hoods will capture all who sit and listen to him.
2 Thessalonians 2:11-12
11And for this reason God will send them strong delusion, that they should believe the lie, 12 that they all may be condemned who did not believe the truth but had pleasure in unrighteousness.

Posted by: makom | September 24, 2010 5:32 PM | Report abuse

Debate? What's to debate? Do you want to vote for the highest tax increase in American history during a sluggish economic recovery? The answer is: No, you do not.

Posted by: npsmith | September 24, 2010 5:29 PM | Report abuse

I almost forgot this one...

for every visa labor worker in the USA, an America of a different etnicity must be hired to learn from them...
non compliance gets you deported...

Posted by: DwightCollins | September 24, 2010 5:28 PM | Report abuse

There is a very simple resolution to companies that prefer to ship US jobs overseas. Let's tell them that if you wish to do that that is ok, but there are two condtions your company must meet. Those two conditions are: first, you are no longer a US registered company, and two, you lose any and all access to US markets because of what you are doing.

Posted by: jerchic6830 | September 24, 2010 5:21 PM | Report abuse

The exodus of jobs started at least 12 years ago. Where was Congress then with the additional taxes for companies going overseas but profiting in the US? All of them, either party, were busy taking contributions from the increasingly profitable companies.

Posted by: Georgetowner1 | September 24, 2010 5:18 PM | Report abuse

A worker in India earns $4.87 an hour doing software development work for an American company.

This is not about manufacturing jobs but simply about American jobs that vanish as American workers are replaced by cheap foreign labor.

For software development work an American would have to spend 4 years in college and $50,000 to $100,000 to obtain a bachelor of science degree.

Americans are not enrolling in the sciences, technology, engineering, and mathematics since the jobs in all these fields are being offshored.

The only engineering field with high enrollments is civil engineering since the jobs in this field can not be shipped offshore.

All of the jobs involving computer technology in an office or laboratory will be sent offshore to cheap foreign labor.

Time to recognize that the majority of jobs of the 21st century are being simply offshored to cheap foreign labor.

The United States is the only nation doing this as other nations know that the offshoring of jobs is economic suicide.

Posted by: bsallamack | September 24, 2010 5:18 PM | Report abuse

no, tax increases won't help...
instead legislate work to be done in the united states...
if a single piece item is made in india...
it gets packaged in the USA for distribution...
if an item needs multiple parts...
it gets assembled in the USA...
create freight container inspection companies to inspect every container coming into the USA, let the conayiner owners pay for it...
see, it's not that hard...

Posted by: DwightCollins | September 24, 2010 5:16 PM | Report abuse

I don't have a problem with companies "outsourcing" jobs. But to be fair, all counties in which any international company has a presence should completely waive all immigration laws for any employee the company hires no from whence, so that the workers have as much freedom as the companies do, and can move to where the jobs are.

The reason free trade works INSIDE the US, and is a major problem in an international context, is that there is no restriction on movements of goods OR PEOPLE inside the US.

Posted by: Don19 | September 24, 2010 5:13 PM | Report abuse

A fair and right income tax policy: 50% over 500k, cut to 25% if from NEW operation only, 0% if operation is in a ghetto.

That addresses the deficit, a proportionate burden put back on the wealthiest during crisis fiscal times like now, and real incentives to start new businesses.

Did you add many-fold to your wealth during the Reagan/Bush era when upper tax tiers were slashed in both 1981 and 2001?

I didn't think so. Emergency times are emergency times, and fair is fair...

- Balkingpoints / www

Posted by: RField7 | September 24, 2010 5:11 PM | Report abuse

A fair and right income tax policy: 50% over 500k, cut to 25% if from NEW operation only, 0% if operation is in a ghetto.

That addresses the deficit, a proportionate burden put back on the wealthiest during crisis fiscal times like now, and real incentives to start new businesses.

Did you add many-fold to your wealth during the Reagan/Bush era when upper tax tiers were slashed in both 1981 and 2001?

I didn't think so. Emergency times are emergency times, and fair is fair...

- Balkingpoints / www

Posted by: RField7 | September 24, 2010 5:07 PM | Report abuse

More idiotic jobs killing tax proposals from the anti business party, our beloved class warriors, the National Democratic Party. I can't wait to vote, my wife, daughter and two sons are frothing at the mouth to get to the polls to add our voices to those demanding a return to common sense policies.

Posted by: jkk1943 | September 24, 2010 4:54 PM | Report abuse

For True Deficit Hawks:

The Bush era tax cuts should expire, but the tax code should be simplified with a minimum rate of 10~15% for all individuals and corporations. The corporate tax rate of 35% is a Joke when loopholes allow companies to write off 100% of their taxes and force small business and individuals to bear the greatest blunt of America’s tax burden. America needs a minimum tax rate of 10~15% for all businesses and individuals after all deductions

http://www.forbes.com/2010/04/01/ge-exxon-walmart-business-washington-corporate-taxes_slide.html?partner=abcnews

“It's the tax benefit of overseas operations that is the biggest reason why multinationals end up with lower tax rates than the rest of us. It only makes sense that multinationals "put costs in high-tax countries and profits in low-tax countries," says Scott Hodge, president of the Tax Foundation.”

All Bush era Tax Cuts, Oil Industry subsidies; estate taxes giveaways and Feedstock and Cotton Subsidies from top to bottom should end. Hit 'Reset' until America can bring its military men and women home from the Middle East.

End the $150~$200 Billion over 10 years to Rich farming conglomerates while victims of decades of abuse and discrimination cannot get a dime. End the $80 Billion in subsidies for rich oil companies over 10 years. End the Estate Tax giveaway that costs $300~$700 Billion over 10 years.

Americans are paying historically low taxes that are the lowest since 1950. No one pays their tax bracket rate as write off allow everyone’s federal, state and local income taxes to average less than 9%/year and for the more wealthy landowners it’s often 0%.

Posted by: Airborne82 | September 24, 2010 4:51 PM | Report abuse

To boost US manufacturing, mandate that all foreign made products imported into the US adhere to the same safety guidelines and pollution laws that US companies have to abide by for manufacturing the same product in the US regardless if we have a factory here anymore or not. Can’t verify your product? Too bad. Banned until approved. If you cheat? Banned forever. Use slave labor? Banned forever. Playing field is instantly leveled. May the best product win.

On taxes, WE THE PEOPLE need a reformed tax code that moves away from taxing INCOME toward taxing WEALTH. No matter where the uber-rich stashed their money, it would not matter. The only way they could avoid paying WEALTH taxes to the IRS would be to renounce their citizenship AND physically leave the country. Not rich? You pay low taxes but you still pay. Everybody needs skin in the game. You founded Facebook or Microsoft? Pay up or hit the road.

Posted by: VaPatriot | September 24, 2010 4:50 PM | Report abuse

For the folks who said that Corporations pay no taxes, they're just plain wrong. But even funnier was the proposition that its wrong that those profits go to shareholders. Who are the shareholders of publicly traded companies? Us, anyone with a retirement plan, anyone who dabbles in the stock market. So, when they pay dividends, who pays taxes on those dividends? Us. I agree with those who think that CEO's are robbing companies blind, but there's already legislation to thwart that. And what's even funnier is that these folks think that such a statute would actually work to save jobs. There will be 100 loopholes anyway. What's wrong is that we can't get American workers to accept jobs which pay at a rate which is competitive world-wide or even for goods sold here. I don't know the solution to that, but if someone comes up with one, that person should run for office.

Posted by: genericrepub | September 24, 2010 4:48 PM | Report abuse

Chinese government subsidies and currency manipulation create an unfair advantage that is destroying American jobs. Americans have subsidized and sacrificed enough Jobs to help China Job growth. China's Currency Manipulation has cost America millions of manufacturing Jobs:

http://www.huffingtonpost.com/dave-johnson/chinese-currency-manipula_b_518951.html

“1) Currency manipulation. China "pegs" its currency at a very low, or "weak" rate, so goods from China cost up to 40% less than they otherwise should.
2) Labor-rights suppression has lowered manufacturing wages of Chinese workers by 47% to 86%.
3) There is massive direct government subsidization of export production in many key industries.
4) China allows environmental degradation that ends up affecting all of us.
5) Intellectual property theft and piracy mean that American products that could be sold are stolen instead.
6) China has a number of policies that block U.S. firms from market access.

This costs American Industries millions of Jobs. Not the Walmart and dollar store product Jobs, but the big industrial multi-million dollar steel, carbon fiber and technology (Nuclear, Aviation, Transportation etc.,) products. The USA must immediately enact a gradual tariff on all goods imported from China up to 40% within 12~24 months in response to their currency manipulation that keeps the Yuan/Renminbi 40% below value. Ratify the free trade agreement with South Korea and other countries with the requirement that trade balances must be equal. America needs fairer trade than the current situation with China.

S. 1254: Currency Exchange Rate Oversight Reform Act of 2009: A bill to identify foreign currency manipulation and apply tariffs to their imported good as is fair to the US consumer:

http://www.govtrack.us/congress/bill.xpd?bill=s111-1254

http://www.opencongress.org/bill/111-s1254/show

Posted by: Airborne82 | September 24, 2010 4:47 PM | Report abuse

Yeah sure!

Sears/K-Mart appliance manufacturing was outsourced to LC in Korea last year.

Like Obama and Congress are really going to take them on.

Posted by: asmith1 | September 24, 2010 4:42 PM | Report abuse

Corporations ship jobs overseas to maximize profits not only for the leaders of the company but also for the stockholders. During the high tech boom in the late 90's people got accustomed to large returns on their investments. A mere 3-8% return was not enough anymore. People want double digit ROI (though right now most are happy with any ROI).

Posted by: pollyana1 | September 24, 2010 4:40 PM | Report abuse

The Middle Class in America Is Radically Shrinking. Here Are the Stats to Prove it:

http://finance.yahoo.com/tech-ticker/the-u.s.-middle-class-is-being-wiped-out-heres-the-stats-to-prove-it-520657.html?tickers=^DJI,^GSPC,SPY,MCD,WMT,XRT,DIA

“The middle class is being systematically wiped out of existence in America. The rich are getting richer and the poor are getting poorer at a staggering rate. Once upon a time, the United States had the largest and most prosperous middle class in the history of the world, but now that is changing at a blinding pace.

So why are we witnessing such fundamental changes? Well, the globalism and "free trade" that our politicians and business leaders insisted would be so good for us have had some rather nasty side effects. It turns out that they didn't tell us that the "global economy" would mean that middle class American workers would eventually have to directly compete for jobs with people on the other side of the world where there is no minimum wage and very few regulations.

The big global corporations have greatly benefited by exploiting third world labor pools over the last several decades, but middle class American workers have increasingly found things to be very tough." Giant Sucking Sound:

The reality is that no matter how smart, how strong, how educated or how hard working American workers are, they just cannot compete with people who are desperate to put in 10 to 12 hour days at less than a dollar an hour on the other side of the world. After all, what corporation in their right mind is going to pay an American worker 10 times more (plus benefits) to do the same job? The world is fundamentally changing. Wealth and power are rapidly becoming concentrated at the top and the big global corporations are making massive amounts of money. Meanwhile, the American middle class is being systematically wiped out of existence as U.S. workers are slowly being merged into the new "global" labor pool. "

Posted by: Airborne82 | September 24, 2010 4:39 PM | Report abuse

Democrats know how to vote for increases in government spending.

They just don't know how to generate any revenue to cover that spending.

Governance is about making tough decisions. We see precious little of that in Congress.

Posted by: postfan1 | September 24, 2010 4:39 PM | Report abuse

JWTX

Outsource our government? PLEASE tell me what part of our government and what elected official isn't already outsourced.

Don't think for a minute that big business and Major money doesn't own this country and its elected officials. Our government is already outsourced and that is why we are where we are today.

Posted by: victorlove1 | September 24, 2010 4:34 PM | Report abuse

Please remember that Comrade Bush signed the law from the Republican Congress that ended his Tax Giveaways to the Rich.

It's all on you, America-hating Republicants.

Posted by: WillSeattle | September 24, 2010 4:32 PM | Report abuse

Dogs best friend: To answer your question about Intel, I will tell you what the HR guy told me when he was laying me off from Intel after I worked there 27 and one half hears. He said, Intel used to be an American company.

Posted by: larry9 | September 24, 2010 4:31 PM | Report abuse

Excellent idea. Why does Intel have a plant in Jerusalem instead of US?

Posted by: dogsbestfriend | September 24, 2010 4:26 PM | Report abuse

COOLCHILLY wrote;
Taxing the comapnies more will just make for less jobs. Don't any of you democrats understand economics?
*******************************************
Don't republicans undesrtand?...taxing companies that take jobs OVERSEAS..as in Malaysia and Thailand...OVERSEAS,,,,JOBS OVERSEAS..as in not in the U.S.,,,,,,we should actually forbid them from doing this...or else take the WHOLE operation overseas...and forfeit the protection of maintaining your home base...and CEOs ..and BMWs and wives and daughters here...as opposed to Indonesia...

Posted by: kiler616 | September 24, 2010 4:26 PM | Report abuse

Typical Democratic (make that "politico") "thinking".

Attack the tip of the iceberg, ignore the underlying foundations, and act AMAZED when the "unintended consequences" are EXACTLY THE OPPOSITE of what you are attempting to accomplish!

I guess this only goes to show that ANYONE can graduate high school, attend college, make a fortune, run for political office...and STILL be a functional idiot!


Phey!

Posted by: wcmillionairre | September 24, 2010 4:19 PM | Report abuse

COOLCHILLY wrote;
Taxing the comapnies more will just make for less jobs. Don't any of you democrats understand economics?
___________________________________________

COOLCHILLY, you may want to read the article again, this is about taxing companies that create jobs OVERSEAS!

Posted by: ChuckHill1 | September 24, 2010 4:09 PM | Report abuse

COOLCHILLY wrote;
Taxing the comapnies more will just make for less jobs. Don't any of you democrats understand economics?
___________________________________________

COOLCHILLY, you may want to read the article again, this is about taxing companies that create jobs OVERSEAS!

Posted by: ChuckHill1 | September 24, 2010 4:08 PM | Report abuse

The Bush Tax cuts are not Obama's tax increases, why doesn't they media accurately describe them.

Posted by: tonyjm | September 24, 2010 4:01 PM | Report abuse

I am so sick and tired of hearing how US Corporations pay the highest tax rates. Sure the tax rates are high but they only PAY for what they can't write off. General Electric, Billions upon Billions of profits last year (and sent jobs overseas) and they paid ZERO taxes. Exxon, Billions upon Billions of profits last year, they paid ZERO taxes. And the list goes on and on. The returns on stocks are what drive these profits; it was once considered a good investment if your stock returned a small return but that has all changed. Now they need to show a much larger return EACH QUARTER. And how is that done? By writing tax laws that allow these companies to hold more and more profits which they pass on to the CEO's and the major stock holders....the elite if you will. And who pays for these special tax breaks? We do! We pay for them through higher taxes (Federal, State, County, Local, Property and various other taxes) and we also pay for them through lost revenue by sending jobs overseas and throwing those workers into a lower tax bracket. There are consequences to every action and we are now fighting the consequences of these actions that have been on going for the past 40 years.

Posted by: ChuckHill1 | September 24, 2010 4:00 PM | Report abuse

Taxing the comapnies more will just make for less jobs. Don't any of you democrats understand economics?

Posted by: COOLCHILLY | September 24, 2010 3:54 PM | Report abuse

Tax and Spend, by definition allows for a balanced budget.
When you Republicans Borrow and Spend, by definition you are increasing the deficit.
Posted by: Provincial | September 24, 2010
=========================
Um, Provincial, the $2.8 trillion borrowed over the last two years has been on the democrats' tab.

Posted by: mtpeaks
=====================
AND
you are fighting all tax increases to balance the Budget..
and
you are fighting all the stimulus
and
we are still suffering from 8 years of Republican Deficit Spending
and
the two wars they started.

WHat is is you do not want to get??

ISA

--------------------------------------

Umh mtpeaks -- and the previous $5 trillion was on "W". That along with the $1.8 trillion via Reagan and the $1.4 trillion form Bush I means that the national debt is due mainly to the GOP. Obama can't be blamed for 2009 BECAUSE the budget for 2009 was already in place when he was inaugurated. Unlike "W" who started with pretty much a clean slate passed to him by Clinton.

Posted by: Freethotlib | September 24, 2010 3:50 PM | Report abuse

Tax an penalize the Big Business for sending jobs overseas. Out Source our Government lets see how they would like it! Middle Class is sick to death of the elite. Let these crooks take a turn on paying taxes. If not how about a revolt!

Posted by: JWTX | September 24, 2010 3:44 PM | Report abuse

HELL YES have this debate and expose the Republicans for who they really are loyal to: big business (NOT American workers)

Bush and his Republican congress gave companies an INCENTIVE to ship US jobs overseas with his tax cuts (effectively increacing unemployment AND the defecit at the same time!)
Obama and the dems already got rid of the Bush tax BREAK given to companies outsourcing... now, then next step is to enforce a PENALTY on companies when they outsource.

We are with you Democrats! Please stand up and fight for this!!

Posted by: jgarrisn | September 24, 2010 3:42 PM | Report abuse

Tax an penalize the Big Business for sending jobs overseas. Out Source our Government lets see how they would like it!

Posted by: JWTX | September 24, 2010 3:42 PM | Report abuse

Tax an penalize the Big Business for sending jobs overseas. Out Source our Government lets see how they would like it!

Posted by: JWTX | September 24, 2010 3:41 PM | Report abuse

Wonders never cease, do they? Even after thirty years of outsourcing.

The real conversation America should be having, however, is how to break up the monopolies, as Theodore Roosevelt would have. Roosevelt's main fear of monopolies was not the control over prices that monopolies have, although he did fear that. His main fear was the economic and then the political power the monopolies inevitably amassed. As we have today. He foresaw, correctly, the dangers to democracy that monopolies pose.

After the monopolies, we have to start to deal with the cartels, especially the oil cartels. We have a lot of work to do.

The economy needs restructuring from the bottom up. Since Reagan rescinded the anti trust laws, the economy has become more monopolized than it was under the robber barons.

We need to abrogate most of the Reagan Revolution and most of what followed it.

A slap on the wrist tax isn't going to do much.


Posted by: flamingliberal | September 24, 2010 3:40 PM | Report abuse

If Harry Reid suggested it, it must be an awful awful idea.

Harry wouldn't know a good idea if he bit him on his saggy a ss.

Posted by: Skeptic1 | September 24, 2010 3:26 PM | Report abuse

Tax and Spend, by definition allows for a balanced budget.
When you Republicans Borrow and Spend, by definition you are increasing the deficit.
Posted by: Provincial | September 24, 2010
=========================
Um, Provincial, the $2.8 trillion borrowed over the last two years has been on the democrats' tab.

Posted by: mtpeaks
=====================
AND
you are fighting all tax increases to balance the Budget..
and
you are fighting all the stimulus
and
we are still suffering from 8 years of Republican Deficit Spending
and
the two wars they started.

WHat is is you do not want to get??

ISA

Posted by: Issa1 | September 24, 2010 3:25 PM | Report abuse

I am baffled by those that believe you can have high wages and low prices in a closed economy.

Posted by: sgilligan1 | September 24, 2010 3:23 PM | Report abuse

TAX the Traitors

ISA

Posted by: Issa1 | September 24, 2010 3:18 PM | Report abuse

This is nothing more than a "red herring." Even if this were to pass, it may bring in some tax dollars, but it will do nothing to bring back manufacturing jobs. The damage has been done long ago in the reagan years with mergers and aquisitions en masse'. Let's face it; until the American people rise up in violent fashion, nothing will ever change. Democrats are backing away from eliminating the 2001 tax cuts because with their salaries, benefits, and stock dividends/holdings they are the wealthy...why screw themselves?

Posted by: bigisle | September 24, 2010 3:17 PM | Report abuse

This is nothing more than a "red herring." Even if this were to pass, it may bring in some tax dollars, but it will do nothing to bring back manufacturing jobs. The damage has been done long ago in the reagan years with mergers and aquisitions en masse'. Let's face it; until the American people rise up in violent fashion, nothing will ever change. Democrats are backing away from eliminating the 2001 tax cuts because with their salaries, benefits, and stock dividends/holdings they are the wealthy...why screw themselves?

Posted by: bigisle | September 24, 2010 3:17 PM | Report abuse

It's long past time for this. Our economy has progressively deteriorated because American companies have spent the past two decades trying to boost profits by cutting labor costs by shipping manufacturing operations to low-wage countries overseas, shipping American jobs overseas in the process. What they've forgotten is that American companies need American workers with good jobs so that they have enough money to buy things as customers. One of the main reasons our economy faces so many challenges is that our idiotic business leaders, focused on short-term profitability and oblivious to long-term viability, have shipped so many jobs overseas that they have shipped our whole economy overseas along with them. Up until now, neither Republicans nor Democrats have done anything to stop this, accepting uncritically the completely erroneous notion that free trade will deliver the best possible economic results for everyone. Every American company that continues to ship American jobs overseas should be taxed, and taxed, and taxed some more until they go completely and irretrievably bankrupt and have to file for Chapter 7 dissolution rather than Chapter 11 reorganization. It's long past time to break the backs of those so intent on forcing labor costs down that they would sacrifice our entire economy to do so.

Posted by: 02Pete | September 24, 2010 3:14 PM | Report abuse

Tax and Spend, by definition allows for a balanced budget.
When you Republicans Borrow and Spend, by definition you are increasing the deficit.
Posted by: Provincial | September 24, 2010
=========================
Um, Provincial, the $2.8 trillion borrowed over the last two years has been on the democrats' tab.

Posted by: mtpeaks | September 24, 2010 3:11 PM | Report abuse

Most decent jobs in USA like IT sector jobs, legal and health sector admin jobs and customer service center are all moving to India. Result... bad quality and high unemployment. Democrats this action is long due but short of what is required.

Posted by: Anonymous97 | September 24, 2010 3:11 PM | Report abuse

Here we go again blaming labor unions for sending jobs overseas because of their high wages, employee benefits and low productivity.
Thats why we all get our nike sneakers for $5.oo right? Because the big bad unions negotiated such high wages the company had to leave and pay workers 15 cents an hour and get to pollute to boot so we can get our sneakers cheaper..... It's BS. They left because of greed and not giving a rats patoot about America...its profits over people.
We need good paying union jobs to keep our economy going...like we had in the 40's thru the 70's. People making walmart wages cannot afford anything but the bare necessities with taxpayer subsidies and that hurts all of us.

Posted by: ladymcbeth45us | September 24, 2010 3:10 PM | Report abuse

I find the tone of many blogs in the Washington Post offensive and in bad taste.
This goes for both conservatives and liberals, although conservatives have a tendency to foam at the mouth more frequently. I don't see what any one hopes to achieve by calling others idiots, morons,
etc. It would also raise the tone of the comments if every assertion was backed by some easily verifiable fact put in the proper context.

Posted by: serban1 | September 24, 2010 3:09 PM | Report abuse

Posted by: blarsen1
Why do the poor schmucks in Kansas and other depressed area care if Bill Gates has to pay 3% more tax? Do they really think these wealthy will create jobs for them or do they think they'll be "rich" someday and have to pay more tax. It's really disturbing how the right brainwash the ignorant.
*****************************************************

You really need to get a clue about how things work in the real world. When you do be sure and explain things to your liberal friends living in the Twilight Zone.

Posted by: MikeJ9116 | September 24, 2010 3:08 PM | Report abuse

In a world where the voters have lost their memories, and their minds, watch as the failed policies of the Bush administration are back----with a vengeance.

See the wealthy get wealthier and the middle class and poor fall further behind as the GOP takes control of Congress.

Watch as corporations run amuck, the environment gets trashed and Wall Street wreaks havoc on the economy yet again.

See the GOP finally destroy the "evils" of Social Security and Medicare. Watch as they pay lip service to fiscal responsibility.

Get ready for ZERO net job growth with Bush II--the repeat of an error.

Coming this November to a voting booth near you.

http://www.thechicagodope.com/2010/08/16/republicans-introduce-%e2%80%9ckill-the-economy-plan%e2%80%9d/

Posted by: Mikeystyle | September 24, 2010 3:06 PM | Report abuse

Posted by: Freethotlib
The GOP and conservatives in general have been working overtime to destroy the middle class.
**************************************************

Step away from the Kool Aid.

Posted by: MikeJ9116 | September 24, 2010 3:03 PM | Report abuse

Tax and Spend, by definition allows for a balanced budget.
When you Republicans Borrow and Spend, by definition you are increasing the deficit.
Posted by: Provincial | September 24, 2010
=========================
Um, Provincial, the $2.8 trillion borrowed over the last two years has been on the democrats' tab.
Given this reckless borrow and spend policy, taxes will have to go up after the election, at which point your theory will be valid.

Posted by: mtpeaks | September 24, 2010 3:03 PM | Report abuse

Excellent idea!!

I am tired of corporations getting tax breaks for shipping jobs overseas.

It is time that this ENDS.

No to outsourcing.

Posted by: maritza1 | September 24, 2010 3:02 PM | Report abuse

Posted by: amstphd
This is what Republicans consider reasoned discussion. Name calling, falsehoods, and conjectures.
****************************************************

I find your comment amusing coming from a person that supports a political party that thinks having Stephen Colbert testify under oath to Congress while in character a good idea.

Posted by: MikeJ9116 | September 24, 2010 3:02 PM | Report abuse

Even Allen Greespan says we have to raise taxes -- not cut -- if we want to get out of the huge natinal debt hole that was dug for us by the BORROW and SPEND GOP conservative.

Remember - more than 65% of our national debt came to us via Reagan Bush and Bush.

Remember - we've been losing jobs for the past 30 years and it was conservative GOP presidents in charge for 20 of those years. What did they do to stop the losses. CUT TAXES!!! But the losses continued and the conservative faithful refuse to see that. All they understand is that DEBT pays for tax cuts and that is okay with them. Conservatives are like the English fox hunters - the unspeakable in pursuit of the unedible.

Posted by: Freethotlib | September 24, 2010 3:00 PM | Report abuse

klausdmk wrote:

"How inept of Democrat Harry Reid to bring up tax increases on American companies who move overseas. Why are they forced to move over seas? American companies move oversea because big Labor Unions have sucked their profits by high labor costs, employee benefits, wage increases and low productivity."

Klaus, not that you would care about facts, but the percentage of private sector unionized workers is 12%. That means about 88% of the private sector doesn't have a wage issue to worry about.

Posted by: 54465446 | September 24, 2010 3:00 PM | Report abuse

Why do the poor schmucks in Kansas and other depressed area care if Bill Gates has to pay 3% more tax? Do they really think these wealthy will create jobs for them or do they think they'll be "rich" someday and have to pay more tax. It's really disturbing how the right brainwash the ignorant.

Posted by: blarsen1 | September 24, 2010 2:59 PM | Report abuse

Posted by: Garak
Forgot one thing: MikeJ9116, time to get back on your meds.
***************************************************

I don't need meds. I need to vote on November 2nd. On November 3rd you and your other liberal wackos might needs some meds. If you do then don't expect Obamacare to pay for them.

Posted by: MikeJ9116 | September 24, 2010 2:59 PM | Report abuse

Having failed to instigate class warfare over the tax cuts, the dems now seem intent on starting a trade war.
If that doesn't work, then their only remaining option will be to cancel the elections.
Much like when they shoved through the health care bill, they could claim that voters are 'misinformed, and have been misled.'

Posted by: mtpeaks | September 24, 2010 2:54 PM | Report abuse

For the conservatives whining about the unions.

Have you ever read the history of this country? The unions cam into being BECAUSE companies were like conservatives - mean, selfish, vicious and no thought for the well being of the nation. The only thing they looked for was a benefit to themselves and the share holders. And the poor and middle class held NO shares.

I assume the conservatives would be happy to go back to the good old days. Wages were $1 a day, no benefits, no vacation pay, no limit to over time -- which was paid same as straight time.

The employees in many towns worked for the company, lived in company housing (and paid for it), bought at the company store because they were paid with company chits plus a little cash. If the workers felt they were being treated in an extremely unfair way they could strike and then be murdered by the Pinkertons or some hired thug outfit brought in by the ever thoughtful company.

If the worker was sick and couldn't work he was tossed off the property.

That said - the wealthy were okay with what was going on. It was just the poor and trying to be better that were unhappy.

Posted by: Freethotlib | September 24, 2010 2:54 PM | Report abuse

Tax and Spend, by definition allows for a balanced budget.

When you Republicans Borrow and Spend, by definition you are increasing the deficit.

Posted by: Provincial | September 24, 2010 2:53 PM | Report abuse

"Sen. Richard Durbin (D-Ill.), also a leadership member, said Democrats decided Monday to stall action on the Bush tax cuts because the current rates remain in place until the end of the year. "We feel there is a greater sense of urgency" in passing the offshore provisions, Durbin said."

How did Durbin ever win an election? Here is my telegram to the Senate leadership:


HAD YOU PASSED LEGISLATION TO KEEP EVERYONE UNDER $250,000 WITH THE CUTS, THAT WAS INDEED A WINNING ARGUMENT. BUT YOU DIDN'T!!!!!!!!! YOU JUST GUARANTEED THAT EVERYONE'S TAXES WILL GO UP. THAT IS NOT A WINNING ARGUMENT!!!!!

Okay, off my soapbox. Love to hear the answer when a Rep candidate asks a Dem why they let taxes go up while they were in control of both houses. What a senile ship of fools. I despair for my party.

Posted by: 54465446 | September 24, 2010 2:48 PM | Report abuse

For those conservatives who are arguing this will make the companies move overseas.

Wake up and smell reality. They are moving overseas and have been for years. You want a short list of NYSE firms that are alrweady overseas?

Haliburton
Foster Wheeler
Accenture
Ingersoll Rand
Tyco
Cooper Industries
Noble Drilling Services
Global Crossing
Seagate Technology
Nabors Drilling

Posted by: Freethotlib | September 24, 2010 2:44 PM | Report abuse

The reality is that the US only represents 20% of the global market.
So if we want to push our US based companies to relocate overseas, and then tax our own imports, well 'stupid is, as stupid does.'
If I were a Senate republican, I'd be tempted to let the dems have their way and wreck our economy.
But thankfully they care too much about our country to let that happen. The dems, though, seem intent on proposing one reckless measure after another to win votes.

Posted by: mtpeaks | September 24, 2010 2:42 PM | Report abuse

I see a few lobbyist here with their panties in a wad over this--Good.

It sounds great but Harry Reid will fold and cater to the lobbyist at the first sign of a fight.

Harry Reid is a total wimp and i hope he is defeated in Nevada. This man should never have been given the position he is in.

Posted by: PennyWisetheClown | September 24, 2010 2:42 PM | Report abuse

Easy to see whose side Sen. Mitch McConnell is on.
Clue to the clueless: He's not on the side of the American worker.

Posted by: jimsteinberg1 | September 24, 2010 2:42 PM | Report abuse

The GOP and conservatives in general have been working overtime to destroy the middle class. Proof?

They allow companies to depreciate equipment purchased for and used in their overseas operation. This cuts the tax bill but the American economy gets ZERO benefit.

They pass tax cuts that are egregiously slanted to favor the walthy while giving the middle class the crumbs.

They constantly tell us how much we owe the wealthy but balk at punishing the wealthy for evading taxes by hiding assets overseas or by parking assets in phony tax dodges in the US.

They constantly talk to us about patriotism BUT where are the sons and daughters of the wealthy? Not in uniform and if they are they're following the lead of "W" with a riskless posting in a do nothing outfit.

The list goes on and on. More examples. "W" refused to allow seniors to purchase less expensive meds from Canada using the excuse of safety. Well, the meds from Canada are made by US companies to standards that are at least as stringent as the US.

Abortion - the wealthy can afford to go overseas for the procedure -- and they do. Wouldn't want someone on the wealth and party circuit to know. BUT the conservatives -- and especially folks like Coburn -- want to stop abortion in the US and publish the names of the poor woman who want one. Not a problem for the wealthy - an enormous and unfair problem for the poor and middle class.

Posted by: Freethotlib | September 24, 2010 2:38 PM | Report abuse

Good...I say soak those companies to the bone. It's a disgrace for a company to shutter a factory so the board of directors can protect their multi-million dollar yearly bonuses.

Posted by: SeaTigr | September 24, 2010 2:32 PM | Report abuse

That disgusting gaggle of liberal morons in congress are well on their way to destroying all of us. This country is terminally ill.

Posted by: rplat | September 24, 2010 2:30 PM | Report abuse

How inept of Democrat Harry Reid to bring up tax increases on American companies who move overseas. Why are they forced to move over seas? American companies move oversea because big Labor Unions have sucked their profits by high labor costs, employee benefits, wage increases and low productivity.

The Senate should do something meaningful in spite of the Democrat leadership. Get their Senate staff to research labor costs within the U.S. compared to foreign countries such as China and Korea. Compare similar type of American companies who move to those who did not move outside the U.S. Analyze the data to determine differences and recommend ways for American companies to achieve increased productivity and profits employing American workers. America needs a Republican leading the Senate.

Posted by: klausdmk | September 24, 2010 2:29 PM | Report abuse

Some people commenting here are making polical statements instead of analysing the situation. These same individuals are complaining about high unemployment rates while criticizing a measure that would force corporations shipping jobs overseas to bring back those jobs in US. What really do we want? Can someone explain to what we really want.

Posted by: colonfr2002 | September 24, 2010 2:28 PM | Report abuse

Reading the comments, it seems the wingnuts are a little unsure about how to come out in favor of shipping their jobs and the jobs of their fellow goobs overseas.

But Limbaugh will give them some Limbaugh Logic tomorrow and then they'll have talking points about how beggaring themselves for the enrichment of the rich is somehow patriotic.

Posted by: Deirdre_K | September 24, 2010 2:27 PM | Report abuse

Time to end the preferential tax treatment for firms that outsource US jobs overseas.

I'm not saying outlaw that, I'm saying don't give them ANY tax deductions at all.

Zero.

It's also time to end H1-B foreign employees when our US unemployment rate is around 10 percent. Stop subsidizing foreign workers.

Posted by: WillSeattle | September 24, 2010 2:23 PM | Report abuse

I'd hate to be a Republican and to first have to oppose this and then have to think up some silly story to tell the goobs about how it's patriotic to ship their jobs and way of life overseas.

I would, however, be grateful that I wouldn't be saddled with the job of hoodwinking anyone smarter than the average Fox News viewer.

Posted by: Deirdre_K | September 24, 2010 2:18 PM | Report abuse

MikeJ9116 wrote:
Are you really this ignorant? I love watching you liberals flail around like a crazy person as you watch your once mighty empire crumble to the ground. Even your arrogance can't stop you from feeling the anguish of falling from your highest peak in November and 2008 to your position at the deepest depths of the ocean this November 2nd.

Obama is crumbling as president. People now see him for who he was all along. An America hating, socialist, Marxist, lying, arrogance, vindictive, racist, greedy, whining P.O.S.

______________________
This is what Republicans consider reasoned discussion. Name calling, falsehoods, and conjectures.
The fact that it's been nearly two years since President Obama was elected and they haven't come up with anything new suggests strongly just who's a P.O.S.

Posted by: amstphd | September 24, 2010 2:18 PM | Report abuse

Democrats are incapable of running the country. They have done nothing the past 20 months except screw things up so badly it will take years, if not decades, to repair. Businesses have to make a profit or they cease to exist. Government is choking businesses with the 2nd or 3rd highest tax rates in the world and with excessive regulation. Many businesses have had no choice but to migrate overseas or they would go bankrupt from government related costs.

Think how stupid this proposal is. If you penalize companies for shipping jobs overseas then they will move their ENTIRE OPERATION OVERSEAS and be done with the threats all together. Then what jobs they did have in the USA will be gone.

Everybody complains about Wall Street getting ahead while Main Street pays the cost. Well that is so because of our Washington, DC politicians. We don't need regulations on companies to cover for their mistakes and misdeeds. We need to let them go bankrupt instead of bailing them out. If companies know they won't be bailed out by the taxpayer then they won't take the risks. The Democrats have bent over for Wall Street and the unions to the point it is likely going to bankrupt the country and they need to be completely removed from office this November.

Posted by: MikeJ9116 | September 24, 2010 2:15 PM | Report abuse


Democrats are parasites, taxing other people and spending other peoples money, and then dodging taxes themselves.


Posted by: Jerzy | September 24, 2010 2:14 PM | Report abuse

Wars overseas and outsourced to contractors for the CIA should be cut too...

Posted by: Wildthing1 | September 24, 2010 2:11 PM | Report abuse

Forgot one thing: MikeJ9116, time to get back on your meds.

Posted by: Garak | September 24, 2010 2:10 PM | Report abuse

It's clear that many here have no idea how the tax system really works. Not taxing foreign-source income earned in a foreign subsidiary only encourages sending jobs overseas. Mr. CEO can open a plant in Ohio and pay current US tax on the profits. Or he can open that plant in China via a foreign subsidiary and not pay US tax on its profits. And if he ships the goods back to the US, he can use transfer pricing to keep the profits in China. Pretty simple calculation.

If the those profits aren't taxed by the US when earned, they're available to fund further overseas expansion, at the expense of US jobs. So down the road there's more incentive to not open a plant in the US.

Not only would ending deferral (as it's called in the tax biz) help keep jobs in the US, it would greatly simplify the Internal Revenue Code. You could repeal pretty much all of subpart F except for the definitions. You own a Controlled Foreign Corporation, it files a US 1120. No more blockers, and all the rest of subpart F planning.

Of course, there are those who want to see US jobs go overseas. They're the ones who spout the disinformation from the Chamber of Commerce and all the anti-jobs "think tanks" such as AEI (who gave us all that wonderful info on Saddam's non-existent WMD).

So the same people who said Iraq had WMD and was behind 9/11 now tell us that the economy will collapse if we remove incentives to ship jobs overseas.

Posted by: Garak | September 24, 2010 2:08 PM | Report abuse

Posted by: Provincial
Borrow and Spend Republicans are the problem.
******************************************************

Are you really this ignorant? I love watching you liberals flail around like a crazy person as you watch your once mighty empire crumble to the ground. Even your arrogance can't stop you from feeling the anguish of falling from your highest peak in November and 2008 to your position at the deepest depths of the ocean this November 2nd.

Obama is crumbling as president. People now see him for who he was all along. An America hating, socialist, Marxist, lying, arrogance, vindictive, racist, greedy, whining P.O.S.

Posted by: MikeJ9116 | September 24, 2010 2:01 PM | Report abuse

"The third measure would provide a payroll tax incentive..." HUH? Haven't we been told that payroll taxes are insufficient to pay all the benefits? Why give tax exemptions when the taxes are sorely needed?

Posted by: kitchendragon50 | September 24, 2010 1:56 PM | Report abuse

This proposal is more ignorance from Congress.

Now instead of just moving lower skilled jobs overseas Obama and the Congress will incentivize the companies themselves, their tax base, and the wealth and white collar jobs to move overseas. Obama and the Democrats are unfriendly to wealth, business and jobs.

Posted by: ELF2 | September 24, 2010 1:53 PM | Report abuse

Do these people know nothing of history? This sounds like Smoot Hawley for our own companies. And what if Microsoft, for example, tells the U.S. to go to Hell and relocates entirely? How many companies would follow?

Posted by: qoph | September 24, 2010 1:51 PM | Report abuse

Borrow and Spend Republicans are the problem.

Posted by: Provincial | September 24, 2010 1:48 PM | Report abuse

Hike the taxes on those who send jobs overseas. We've been giving tax breaks and bailouts to rich corporations and CEOs who have sent jobs overseas. It is time to quit catering to the wealthy and begin building the middle class again.

Posted by: tinyjab40 | September 24, 2010 1:46 PM | Report abuse


Nevada has 15% unemployment but Harry the horse's asp Reid is for raising the taxes on working Nevadans to fund more tax and spend boondoggles.

Posted by: screwjob21 | September 24, 2010 1:44 PM | Report abuse

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