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Why Mitt Romney is full of hot air
The GOP's Mitt Romney today said that he wants to give a tax break to US companies who have offshore divisions so that they can bring their money back into the United States after making it abroad.
He says that this will encourage big business to return to the USA. And that it will encourage them to bring jobs back to the USA, and it will let us to "compete" with the rest of the world and it will magically fix our economy.
That's a really nice painting isn't it?
The USA allows tax havens to our big business, so that they don't have to pay the same taxes as everyone else. OK we all know that, and have known it for decades. But now, they should be able to take that cash made overseas, bring it back to the USA, and have it all to themselves to do whatever they want with it. What a great deal! The rich get richer again!
And what does he mean by this scenario will allow us be able to bring jobs and "compete?"
Hogwash. The US cannot "compete" because Americans demand higher pay than their offshore counterparts and are less productive. All his plan will do is encourage big business to keep their labor forces offshore at a reduced tax rate, then bring the money back to the USA to pay their CEO's big fat bonuses.
Meanwhile middle America and small business gets to pay the highest taxes of everyone.
Business is not only going offshore because it is a more cost effective solution, it is because access to a talented labor pool is much easier to obtain abroad when working in many industries. IT is one of them. Why would any sensible US company based offshore ever want to return jobs to the USA except for call centers so that we think we are speaking to a real US based corporation?
I hope the American people can see past just another useless politician's fairy tales. The problem is, if we don't get a republican in office soon, ANY republican, its going to be another ugly 4 years.
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