Website Dedicated to Computer Professional...and
some not so Professional
Oversea Outsourcing Hurting the U.S. Tax Base
Federal and State Governments should pass laws banning
foreign outsourcing of government work. Government should also pass
tax laws that take away incentives for private companies to outsource jobs
overseas. Outsourcing of work overseas is a double whammy to the
taxpaying public. If the work was performed in America the employed
person would be paying U.S. taxes and through the job multiplier affect
would help support other jobs that would also contribute to the tax base.
When the job is sent overseas all that tax revenue is lost. In
addition to the lost tax revenue governments now have to pay unemployment
benefits to jobless workers. The lost tax revenue and increased
unemployment expenses negatively affect government's ability to fund
education and other services for its citizens.
The U.S. Government could change this dramatically by changing the Income
Tax code. If a company's U.S. employees make up 70% of its cost base
you exclude 70% of its income from U.S. income tax. If a company's
U.S. employees only make up 20% of its cost base it pays income tax on 80%
of its income. This change would help make it economically
unattractive to send jobs overseas. It could be quickly implemented
and could be very effective in stopping our loss of jobs overseas.
your comments to firstname.lastname@example.org
All rights reserved
Disclaimer: The Opinions shared on
TheNetworkAdministrator.com are contributed by its readers and does not necessarily
the opinion of the creators of this publication.