Taxes are too high, Democratic "reforms" will break the economy and cause more job outsourcing.
USMC11B said 02/20, 11:15 AM
The United States of America currently has the 2nd highest corporate tax rates in the world, even with the tax cuts imposed by the President. I think that the #1 cause of job outsourcing is that taxes are too high in the United States. What is also troubling is that Democratic candidates want to get rid of the Bush tax cuts, and raise corporate taxes, while at the same time raise taxes to pay for an expensive $100 Billion health care program.
In all fairness, the Democrats have said they'd lower taxes for the middle class. But really, what good is that when you're job has been outsourced to China, because your company is being taxed to death. They're universial health care plan also dictates a tax hike, and they've admitted that they want to spend $100 Billion a year on this program. Let me give you an idea of how much $100 Billion a year is. We could fight both the Iraq War and Afghanistan War, 1.5 times for that price. We could revamp our education system, and effectively double It's funding. Hell, for $100 Billion a year we could probably buy a small country.
Austhus said 02/20, 11:24 AM
That's some flawed logic as to why corporations are outsourcing, and shows very little understanding of our tax policy.
Corporations based out of the U.S. are subject to the U.S. taxing code, no matter if they outsource or not. In fact, several plans on the table call for corporate tax breaks for companies that keep jobs in the U.S.
What you don't understand is these companies don't outsource labor because of the U.S. tax policy; they outsource it because labor costs in foreign countries are cheaper. A company can hire 10 highly-educated Indian workers for the same cost as an American with a high school diploma. Outsourcing has nothing to do with tax policy and everything to do with cost of labor.
Also, check your war funding facts. Many analysts are of the opinion Iraq alone will cost the U.S. more than $1 trillion before it's all over. It's estimated to cost the U.S. around $200 million each day. That eats away at that $100 billion pretty quick.
America does need a change in it's tax policy to encourage employers to keep jobs in America. However, saying outsourcing is caused by the corporate tax rate is ridiculous.
USMC11B said 02/20, 11:39 AM
My logic isn't flawed at all. Its common sense that lower taxes, translates into higher profits for corporations. And higher profits creates a demand for more labor. Now the reason corporations outsource, is to make more money. Its all about money, if we can give corporations more incentives to stay in the United States, then we'll keep those manufacturing jobs in America. And even if they continued to outsource these manufacturing jobs, we'd still be creating jobs in the service industry. So my point still stands, repealing the Bush tax cuts would be hurtful for the economy.
Now, I'd like to know who those analysts are, because that estimate is dead wrong. Our military budget is $500 Billion, the Iraq and Afghanistan wars make up about $70 Billion of that budget. And to say that we spend $200 Million a day is ludacris, and a clear mis-representation of the facts.
Austhus said 02/20, 12:18 PM
My source is the New York Times. They've been following war spending extremely accurately. And your figures don't take into account the infamous "supplemental war requests" that occur ever few months.
The FY'08 budgets request more than $660 billion for the Department of Defense. Over the life of the war, the total costs have added up to more than $1 trillion: (http://www.nytimes.com/2007/01/17/business/17leonhardt.html?_r=1&oref=slogin)
However, back to the original argument:
Corporations love to make money. Thus they look for the greatest return on any expenditure. Labor costs overseas, being lower than those in the U.S., offer the greatest return on the investment.
Lowering the corporate tax policy will lead to more cash in hand for corporations. That's a fact. But there is NEVER a promise that they spend that money on American labor. In fact, if they are making more money hiring cheaper labor in foreign markets, then they will continue to do so.
Comments
Add Your Comment
Come on. Be a man and finish this debate off. It's now a week old, and there is little excuse to not finish out this debate except you don't want a loss on your record.
Austhus | 02/27/08
Report Offensive CommentPost A Comment
Please keep it clean. Bad words will get filtered, and offensive comments will be removed.
CNN TOP POLITICAL STORIES
TOP STORIES on TIME.COM
TIME PHOTO ESSAYS
Israeli Soldiers Sweep Into Gaza
IDF tanks and infantry launch a ground offensive in the Palestinian enclave
(Uriel Sinai / Getty)
The Science of Snowflakes
Caltech physics professor Kenneth G. Libbrecht has turned his passion for the study of ice crystals into an art form. In his books and website, Snowcrystals.com, he breaks down some of the basics behind these miniature miracles of nature
(Kenneth G. Libbrecht)
usmc. go die.
papabear | 02/22/08
Report Offensive Comment