A Vote For Clinton Is A Vote To Continue Outsourcing US Jobs - Obama: END OUTSOURCE TAX INCENTIVE!!

Dems Will Win

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Sun Feb-17-08 11:10 PM
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A Vote For Clinton Is A Vote To Continue Outsourcing US Jobs - Obama: END OUTSOURCE TAX INCENTIVE!!

Edited on Sun Feb-17-08 11:47 PM by Dems Will Win

HILLARY CLINTON WILL DO NOTHING TO END OUTSOURCING, OBAMA WILL END THE TAX DEFERRAL OUTSOURCING INCENTIVE

Try and understand this because it is complicated. Especially Wisconsin, Texas and Ohio, I'm talking to you.

Sen. Clinton does not really connect economic impact with all the "free trade" agreements she has voted for or through the Outsourcing Tax Incentive she has done nothing to eliminate. She WILL NOT vote to end the current tax defferal system that is stealing your job from under your feet. Only Obama has said he will work hard in this issue AND END THE INCENTIVE. Millions of jobs gone already from the Outsourcing Tax Incentive, and it will dramatically increase now from a few or several million lost jobs to 15 to 20 million lost jobs, INCLUDING TECH JOBS!

If you want to end the tax incentive for corporations to outsource, and stop outsourcing, you must vote for Obama. A vote for Clinton is a vote for more outsourcing and further economic disaster. Working-class voters for Clinton are slitting their own throats in this election if they vote for her, especially in OH, WI and PA, where outsourcing has hit hard.

Tax experts say the incentive has been there for decades - since there has been a corporate income tax. It's not Bush's doing.

The incentive exists because the US taxes corporations at rates higher than most other countries. According to the Institute for International Economics, the effective rate for US corporations was just over 30% in 2002, while mainland China's effective corporate rate was only 11.3%, Britain's 18.2%, Mexico's 15.1% and Indonesia's a miniscule 0.2%.

Furthermore, the US also attempts to tax money that US-based companies earn in other countries, but only after those profits are brought back to the US. That means profits that remain overseas, perhaps invested in new factories in low-tax countries, never get taxed at the higher US rates. And that's been true through both Democratic and Republican administrations.

The Institute for International Economics, recent report states:

"the US corporate tax system disadvantages firms that produce in the United States. Moreover, US corporate tax rates are sufficiently high that some multinational corporations may be tempted to deploy strategies that book profits in low-tax jurisdictions."

To fix the tax problem... tax businesses on their foreign income right away. Corporations would still get a credit for any taxes paid to other countries, as they do now, but would no longer be able to defer the US taxes indefinitely.

Close Loopholes In International Tax Law That Encourage Outsourcing. Today’s tax law provides big breaks for companies that send American jobs overseas. Current “deferral” policies allow American companies to avoid paying American taxes on the income earned by their foreign subsidiaries and encourage them to keep their profits parked overseas, not reinvested in America. ...end deferral that encourages outsourcing and shut down other loopholes to make the tax code work for the American worker, not provide tax breaks for companies that ship jobs overseas.

...end the ability of US corporations to defer a full US tax indefinitely by using foreign subsidiaries to do business in low-tax jurisdictions. Accordingly, ...look through these corporations and impose a current US tax as the subsidiaries earn money (reduced, of course, by a credit for any foreign taxes on those earnings). This is consistent with current financial accounting rules, as earnings of foreign subsidiaries are included immediately in the parent’s (consolidated) financial statements. (Although, as noted in a prior post, the US taxes on those earnings are not booked until the earnings are paid to the US parent as dividends.)

The US respecting foreign subsidiaries rewards outsourcing. By “outsourcing,” a US business having an independent foreign business provide goods or services for the US business that, historically, the US business provided for itself. To the extent that (i) the independent foreign business is in a low-tax country and, this may be unlikely, (ii) those low taxes are reflected in lower prices from the foreign business, little can be done to reduce the US tax incentive to export. But, under current law, outsourcing makes it easier to move the extra profit in a multinational — which, in this context, most would view as profit attributable to non-asset intangible value, like know-how and non-patented technology — outside the reach of an immediate, full US tax. A proposal to look through foreign subsidiaries would get at this incentive to outsource.

http://www.discourse.net/archives/2004/07/kerry_exporting_jobs_and_taxes.html

And if you think Clinton is not a total sellout and actually cares about you, Wisconsin and Ohio, just read this!

Hillary Clinton made it apparent where she stood on outsourcing during her India visit, in an attempt perhaps to clear the Indian misgivings received during the Kerry campaign. "There is no way to legislate against reality. Outsourcing will continue," she told an audience of Indian big-wigs. She pointed out that there were 3 billion people who feel left behind and are trying to attack the modern world in the hope of turning the clock back on globalization. "It is not far-fetched to imagine ... if the Indian miracle would be the one of choice of those who feel left behind," said Hillary.

Hillary has been at the forefront in defending free trade and outsourcing. During the height of the anti-outsourcing backlash in the US last year, she faced considerable flak for defending Indian software giant Tata Consultancy Services (TCS) for opening a center in Buffalo, New York. "We are not against all outsourcing; we are not in favor of putting up fences," Hillary said firmly, despite inevitably invoking the ire of the anti-free trade brigade.

Hillary further clarified her position during her recent visit as well as solutions that could be beneficial to both countries. She urged Indian industries to invest more in the US to allay negative outpourings over outsourcing of American jobs to India. "I have to be frank. People in my country are losing their jobs and the US policymakers need to address this issue," she said. She ruled out that the anti-India feeling was a reflexive reaction, and explained that the feeling was more because of the imbalance in trade between the two countries, which in turn caused anguish among Americans about the nature of the economic relationship.

"In 2003, US merchandise exports to India was $5 billion, while India exports to the US was $13.8 billion. Though the US understood that the economic vibrancy of India was in its own interest, there are people who feel left behind and might stir up negative feelings against India because they do not understand the economic benefits of outsourcing," Clinton remarked.

"If the feeling was to be arrested, Indian companies should invest more in the US to create a balance in trade relations," she said. Hillary added that she had personally wooed Indian companies to establish partnerships with American counterparts. "In June 2002, TCS partnered with the University of Buffalo to bring patented research to the market place. I would like to see more of such partnerships," she said.

http://www.atimes.com/atimes/South_Asia/GC01Df03.html

Her entire career in upstate New York has been of a piece in a series of token gestures, creating 10 token window-dressing American jobs for Tata Consulting in Buffalo (what a great trade -- there are more than 10 Indian consultants right now just in my cubicle cluster in Albany!!). It's endemic up here, cheap token gestures like renaming empty streets leading to dead malls and empty office campuses "Computer Avenue" and "Silicon Way"; pointless PR campaigns "re-branding" upstate New York as "Tech Valley"; setting up a local non-union "Charter School" in technology with enrollments of 40 kids who probably spend more time being photographed with politicians than learning."

The comment came in response to a very important story of how the Clinton campaign was actively seeking the support of key U.S. and foreign "big money" in the Offshore Outsourcing business. The article referenced appeared in the LA Times, "Clinton woos the outsourcers feared by U.S. workers". This article is also well worth a read, essentially underscoring the tremendous reality lost in the much misunderstood Obama campaign claim that Hillary Clinton was essentially representing the interests of the Indian offshore outsourcing business elites.

Here's one fine quote from the article which gives some indication of how offshore outsourcing money is helping to power the Hillary Clinton campaign:

"Clinton is successfully wooing wealthy Indian Americans, many of them business leaders with close ties to their native country and an interest in protecting outsourcing laws and expanding access to worker visas. Her campaign has held three fundraisers in the Indian American community recently, one of which raised close to $3 million, its sponsor told an Indian news organization.

But in Buffalo, the fruits of the Tata deal have been hard to find. The company, which called the arrangement Clinton's "brainchild," says "about 10" employees work here. Tata says most of the new employees were hired from around Buffalo. It declines to say whether any of the new jobs are held by foreigners, who make up 90% of Tata's 10,000-employee workforce in the United States."

The quote from John Miano at the Programmer's Guild reminds me very much of the criticisms faced by Harris Miller in last year's Virginia Dem. primary:

"It's just two-faced," said John Miano, founder of the Programmers Guild, one of several high-tech worker organizations that have sprung up as outsourcing has expanded. "We see her undermining U.S. workers and helping the offshoring business, and then she comes back to the U.S. and says, 'I'm concerned about your pain.' "

TATA or TCS, the Indian Offshore Outsourcing and H-1b bodyshop mentioned in the article imports thousands of Indian guest workers into the US to facilitate offshore outsourcing of jobs to India or replace American workers in the U.S. with imported Indian workers also in the U.S. The key in both cases is the so-called "guest worker" programs (e.g., H-1b, L-1) supposedly created because of "shortages of American workers" (a widespread myth concocted at great effort and cost by outsourcing and anti-worker lobbies).

Hillary Clinton is all about LIES -- lies propping up bigger lies to help make the rich and powerful more rich and more powerful leading to the sort of sharply reduced living standards for the majority of Americans now increasingly in evidence all over the U.S.

http://modernpatriot.blogspot.com/2007/09/hillary-clinton-supports-destruction-of.html

Here's Hillary's bill to India Today and Tata Consultancy for her travel:

How many of you did not understand how we are being royally screwed before reading this post? Obama has said all the right things, Clinton had said

PLEASE RECOMMEND IF YOU ARE OPPOSED TO THE CORPORATE TAX INCENTIVE TO OUTSOURCE AMERICAN JOBS!!

A Vote For Clinton Is A Vote To Continue Outsourcing US Jobs - Obama: END OUTSOURCE TAX INCENTIVE!!

LOOK HOW HAPPY HILLARY IS TO SELL OUT YOUR JOB!