Kerry tax plan proposes to slow loss of jobs overseas

[Judi Lynn]

Posted on Sat, Mar. 27, 2004

Kerry tax plan proposes to slow loss of jobs overseas

MARTIN CRUTSINGER
Associated Press


WASHINGTON - Democratic presidential candidate John Kerry unveiled his plan to deal with "Benedict Arnold" companies that he has repeatedly criticized during the campaign for reaping tax benefits while shipping U.S. jobs overseas.

But his proposal to end an estimated $12 billion annually in corporate tax relief is certain to stir stiff opposition from some of America's largest multinational companies who are enjoying those breaks. And private economists questioned whether it would do much to halt the hemorrhaging of manufacturing jobs to foreign countries.

Speaking Friday at Wayne State University in Detroit, Kerry said his corporate tax proposal was part of a comprehensive economic plan he will put forward in coming weeks to create 10 million jobs during the first four years of a Kerry administration.

The jobs pledge - and the corporate tax changes - were designed to highlight economic issues where polls consistently have shown President Bush is vulnerable: an economic recovery where job growth has lagged badly, the loss of more than 3 million manufacturing jobs - one in six - since mid-2000 and rising anxiety among white-collar workers about the increased "outsourcing" of service jobs to foreign countries.
(snip/...)

http://www.miami.com/mld/miamiherald/news/breaking_news/8289910.htm

[unblock]

1. sounds like a good conservative plan, and a great political proposal

i'm waiting for details, but it sounds like the right thing to do economically from the point of view of believing in 'free trade'.

the conservative (actual conservative, not republican) view being generally in favor of outsourcing, but recognizing that it causes pain in the short run, a tax to slow, but not halt, the pace of the jobs drain would be a good idea.

politically, doing anything in favor of jobs is a great idea, especially if its done in a way that talks about corporate incentives. if he plays this right, he can come out as pro-business, which would be fantastic politically.

[whistle]

2. I think that it's right on target....

...It holds George W Bush accountable for the 8 million jobs lost under his administration (the 3 million that vanished during the past 3 years and the 5 million he said he would create), the failure of the tax cuts for the rich to get this economy going and sustain growth and real long term investment in the future of the U.S. economy (jobs training and small business opportunities). Just keep putting feasible proposals out there John and the republicans and BushCo won't stand a chance.:kick:

[toopers]

3. The only question is . . .

will the tax cuts be large enough to offset the price increase associated with using US labor?

[ikojo]

5. This is a false argument...that if US labor is

used then the price of goods will skyrocket. Take the case of a pair of Nike tennis shoes:
They are manufactured overseas by workers who are paid pennies per hour.
They are brought to the US and sold for $100 or more.

Almost all clothing is manufactured in Asia.
Tommy Hilfiger and Polo are no less expensive than had their clothes been made by well paid UNION labor.

Also, many health insurance claims and customer service functions are done overseas (I believe UnitedHealthGroup processes some claims in Jamaica and is using Indian customer service. Talk about not being able to enforce HIPAA privacy regulations! How can an overseas customer service rep be subject to US laws and regulations?). Yet the price one pays for health insurance continues to climb. If the administrative costs to the insurance companies are decreased by using cheaper "labor" shouldn't that cost be passed on to employers and workers who purchase insurance?

I get tired of blaming "labor" costs for high prices. What about the pay given to CEOs? That is way more than workers make. How about outsourcing CEOs and other members of the board of directors?

[mobuto]

7. By definition yes

If they aren't, then corporations will take the tax hit and continue to use foreign labor. This won't legislate behavior, but it will shift the balance towards American workers.

[4dsc]

4. Enforce Fair Trade Laws!!

See how quick companies go overseas once you start enforcing the Far Trade law we currently have on the books.. That would make a ton of difference..

[bvar22]

6. Yeah, Free Trade will only hurt for a little while.

The American Middle Class just needs time to adjust! All those manufacturing and tech jobs that allowed the Middle Class to actually begin living the American Dream were cutting into the salary of the execs and the payoffs to the investment class. The
Middle Class just needs to adjust to the American Dream offered by McDonalds and Wal-Mart.

If you want to see growth like we had in the 50's and 60's, return to the STRONG LABOR economic policies of Franklin Roosevelt (and Teddy Roosevelt too, gotta love the TRUST BUSTER).


Letting our Manufacturing and Textile Industries wither and die is a MAJOR CONCERN for our NATIONAL SECURITY in an increasingly unstable World. A day may come when we NEED these industries for our NATIONAL SURVIVAL.

John Kerry, you will get my vote, but Kucinich and the Progressive Caucus has my heart. All further campaign contributions will NOT go to Corporate owned DNC, but to members of the Congressional Progressive Caucus and the Congressional Black Caucus!

http://bernie.house.gov/pc/index.asp