Deficit Commission Proposal Could Encourage Outsourcing
by Dustin Ensinger
from Economy in Crisis
December 7, 2010 - 12:10pm
Looking to stop the president’s deficit commission proposals dead in their tracks, labor leaders have come out swinging against a specific portion of the package that they claim would incentivize companies to outsource American jobs.
The plan calls for the U.S. to move toward a system of territorial taxation. That would allow companies to exempt foreign profits from domestic tax laws.
"There is no question that this incentivizes outsourcing, and that's the opposite direction from the one we want to be going in," AFL-CIO Deputy Chief of Staff Thea Lee told The Huffington Post. "It's directly contrary to how we should change our tax system. We need to change our tax code to remove incentives for offshoring. This changes the tax code to greatly enhance the corporate tax incentive."
The report, designed to save $3.9 trillion over the next decade, would take a supermajority - 14 of the 18 members - voting to send it to Congress to trigger an automatic vote. As things currently stand, that looks as though it may not come to fruition.
(Original here.)
from Economy in Crisis
December 7, 2010 - 12:10pm
Looking to stop the president’s deficit commission proposals dead in their tracks, labor leaders have come out swinging against a specific portion of the package that they claim would incentivize companies to outsource American jobs.
The plan calls for the U.S. to move toward a system of territorial taxation. That would allow companies to exempt foreign profits from domestic tax laws.
"There is no question that this incentivizes outsourcing, and that's the opposite direction from the one we want to be going in," AFL-CIO Deputy Chief of Staff Thea Lee told The Huffington Post. "It's directly contrary to how we should change our tax system. We need to change our tax code to remove incentives for offshoring. This changes the tax code to greatly enhance the corporate tax incentive."
The report, designed to save $3.9 trillion over the next decade, would take a supermajority - 14 of the 18 members - voting to send it to Congress to trigger an automatic vote. As things currently stand, that looks as though it may not come to fruition.
(Original here.)
Powered by Blogger
0 Comments:
Post a Comment
<< Home