[ale] OT: Tax cuts boost joblessness, encourage outsourcing

[Alan Stewart]

I'm surprised no one here has said anything (that I've noticed) about 
Theodore Seto's editorial in the 4/29 issue of the AJC. An excerpt:

> But here again, our chief economist appears to be ignorant of basic 
> U.S. tax law. When a U.S. corporation manufactures in the United 
> States, its income is subject to U.S. tax at a nominal rate of 35 
> percent. If the same corporation moves those jobs to some other 
> country, it can normally structure the deal to reduce its U.S. taxes 
> to zero. That's right, zero.
>
> What this means is that the standard economists' assumption, "all else 
> being equal," is simply not true. Current U.S. tax rules create a 
> strong artificial incentive to move business offshore. Until recently, 
> the one big disadvantage of doing so was that it was then hard to 
> bring the resulting profits back to the United States. The most recent 
> Bush tax act helped solve this problem by cutting U.S. taxes on the 
> repatriation of offshore profits. In other words, the most recent Bush 
> tax act made these artificial incentives to move business offshore 
> even stronger.
>

The full text: 
http://www.ajc.com/monday/content/epaper/editions/monday/opinion_0476ccfbb698c0700031.html

-- 

D. Alan Stewart
Senior Software Developer
Layton Graphics, Inc.
155 Woolco Drive
Marietta, GA 30065
Voice: 770/973-4312
Fax: 800/367-8192
http://www.layton-graphics.com