Thursday, September 30, 2010
Senate Outsourcing Bill Stalls
Senate Republicans voted to defeat an effort by the Democratic majority to bring up legislation that would take aim at U.S. multi-national corporations moving manufacturing jobs overseas. The bill would have used a combination of tax penalties and credits to induce large employers to retain manufacturing jobs in the U.S.It would have ended two tax measures currently available to large corporations that Democrats argue allows firms shipping jobs overseas to benefit from doing so.
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There has been a lot of talk about this bill in the past few days. I believe the Democratic party has the right idea, but is going about it the wring way.
ReplyDeleteThe attempt by Democrats to turn to the legislation rather than dealing with the more thorny question of how to deal with the expiring Bush-era tax cuts was largely a political decision heading into the November midterm elections. The Democratic party knew they would not have enough votes to make this happen, they are just doing it in hope that it opens the eyes of the Nation.
Republicans countered that the legislation would raise taxes on the largest U.S. companies, which are responsible for much of the job growth in the country. This is true, I think both parties are correct here. Outsourcing is taking jobs, but it is also creating jobs--outsourcing allows everything in our country to grow faster. By outsourcing we were able to put a computer in every office and thus causing industries productivity to soar.
So it's a two way door. We have to make sure the by outsourcing, we are growing the nation, if not we may have to impose incentives to produce domestically.
I don't know much about the politics on this issue, but in a business class in high school outsourcing was a big issue in the class. There has been quite a bit of people who lose their jobs because big corporations are finding people who can work for much less. It may seem bad, especially for the people out of work, but its allows our economy to grow at a faster pace. Also believe it or not, new jobs are created because of the outsourcing. So even though people are losing jobs, more people are finding ones and this process is allowing are economy to grow.
ReplyDeleteIf the government isn't going to provide tax incentives to keep businesses from outsourcing, then I think it has a responsibility to increase government support of job training and education in general so that our workforce is qualified to switch job sectors when the manufacturing jobs leave.
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