President Obama criticized the Republican Party for rewarding billion-dollar tax cuts to major US corporations who created jobs abroad, while saying that US tax dollars should be supporting companies who create jobs in the United States.Just last month the president signed a legislation that helped small businesses by increasing credit help and slashing taxes. According to the statistics, the legislation has helped many business owners.
In order to prevent doubts that could potentially hurt the economy, US Representative Mike Pence from Indiana recommended that Congress extend current income-tax rates, referring to the Bush administration’s tax cuts that are to expire at the year’s end. Although the Republicans and Democrats support the extension of low tax rates for households making more then $250,000 per year, the Republican Party is going to oppose the upcoming tax increase in January.
The incentive to create jobs in the US may look appealing but I don’t suspect this to be enough to sway corporate America who currently out-source.
This statement operates under the merchantalist assumption that economics is a zero-sum game, and that the only way to "win" is to gain money, jobs, etc while everyone else loses. It is clear at this point in history that jobs elsewhere eventually create jobs here by increasing overall trade and global demand via increased incomes abroad.
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