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Even if I send all my jobs overseas, do I still get big tax breaks?

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Crazy Dave Donating Member (1000+ posts) Send PM | Profile | Ignore Tue Jan-02-07 12:50 PM
Original message
Even if I send all my jobs overseas, do I still get big tax breaks?
For big corporations the answer is a predictable yes.

I was listening to a talk show this weekend on Sirius and there was a gentleman saying that the reason you don't see American businesses and CEO's acting too worried about their jobs going overseas, just their employees is that pretty soon all the manufacturing and tech support jobs for their businesses will be overseas but yet the CEO's and other fat-cats won't have to move there themselves. No, they get to stay and enjoy the benefits allowed to them of tax breaks and their ability to direct and influence political decisions that have an impact on all our lives. Trust me, they have the power and the money to persuade Washington and keep the jobs here but that won't happen. Before most companies paid for protection from globalization but once America became Wal-Martized it was time for a different option. Now they pay Washington, D.C. to allow them to piss on their workers and their families and still be allowed get the tax breaks and tax payer subsidies (tax free income for corporations under the guise of promoting American products overseas).
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MH1 Donating Member (1000+ posts) Send PM | Profile | Ignore Tue Jan-02-07 12:54 PM
Response to Original message
1. Yes, for now. Fix that. "Export Products Not Jobs Act"
introduced in 109th by Kerry.

Will almost certainly be re-introduced in 110th in similar form.

You can find out about it at thomas.loc.gov. Do word/phrase search on "Export Products Not Jobs Act" (without quotes).
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Crazy Dave Donating Member (1000+ posts) Send PM | Profile | Ignore Tue Jan-02-07 01:02 PM
Response to Reply #1
6. I'll definitely check it out
But for now the facts and stats are really bad. My wife joked about American kids going to school one day and instead of having a live teacher in the classroom, they'll have a video conference with a school teacher from India teaching them.

I know, it sounds a little silly but not too much so.
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napi21 Donating Member (1000+ posts) Send PM | Profile | Ignore Tue Jan-02-07 12:57 PM
Response to Original message
2. Read "Exporting America" by Lou Dobbs. He does a very good job
of explaining exactly how this works, the reasons why corporations want to send all their jobs to the lowest cost producers, and how they get away with it.
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Deja Q Donating Member (1000+ posts) Send PM | Profile | Ignore Tue Jan-02-07 12:58 PM
Response to Reply #2
3. Is it all about profit, or is the belief of 'peak oil' a factor in it too?
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napi21 Donating Member (1000+ posts) Send PM | Profile | Ignore Tue Jan-02-07 01:49 PM
Response to Reply #3
9. Profit = personal wealth...FOR THEM! Lou's main point in the book
is that with corporate power also comes responsibility to the American people and America, and thatall major corporations have been ignoring their responsibilities for almost 30 years! I haven't yet finished the book, but heclaims to have some suggestions to how to fix this. I'll be interested tosee what they are.
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jwirr Donating Member (1000+ posts) Send PM | Profile | Ignore Tue Jan-02-07 02:02 PM
Response to Reply #3
11. Peak oil should be a factor in keeping jobs home. Transportation
will not be cheap.
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jbonkowski Donating Member (243 posts) Send PM | Profile | Ignore Tue Jan-02-07 12:58 PM
Response to Original message
4. Some companies have exported everything
All you have to do is incorporate in the Caribbean, and you won't pay any taxes at all, no matter where the headquarters really is.

jim
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Crazy Dave Donating Member (1000+ posts) Send PM | Profile | Ignore Tue Jan-02-07 01:03 PM
Response to Reply #4
7. I really didn't think it was as bad or had progressed...
...to the state that it is in now. Seriously, I knew it was bad but not this bad.
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flamin lib Donating Member (1000+ posts) Send PM | Profile | Ignore Tue Jan-02-07 01:00 PM
Response to Original message
5. The irony of it is that the wages paid to the workers packing up
the manufacturing equipment for shipment are deductable as a "relocation expense".
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TahitiNut Donating Member (1000+ posts) Send PM | Profile | Ignore Tue Jan-02-07 01:28 PM
Response to Original message
8. It's a fundamental perversion of economics - a HUGE "ends justifies the means" corruption.
It merely takes a clear and uncomplicated comprehension of the very reason for having an economic system in the first place. It is unarguable that people should be engaged in labor - providing goods and services that help sustain themselves and their community. An economic system is created by people to ensure that there is some sustenance and loose approximation of 'fairness' in the coordination and encouragement of such activities - something more than "every man for himself!"

The basic principle is that a person should receive compensation for their labor when that labor benefits others. We exchange labor - I produce food, you build shelters, and she weaves clothing. We all need all three - so we have something more than what we ourselves produce, because we can all produce more than what we ourselves need when we do so with expertise and the productivity that comes for that expertise. (It seems to me that this is all axiomatic.)

A by-product of any economic system that's even moderately successful is the excess wealth that labor creates - excess in that it's above and beyond the thin edge of survival. Over history, we've seen than excess wealth aggregate in the hands of a few - increasingly in the hands of those that DON'T labor. We have called them various things over our history: chiefs, priests, kings, and robber barons. They are the people in whom we've placed some trust and who've, in MANY cases, exploited that trust. Some might call that exploitation mere 'compensation.'

Thus, we get to the point that we look at pools of wealth in the hands of a few and create mechanisms to 'motivate' them to subsidize the means of production. In the old days, that was land and beasts of burden. That 'motivation' has taken the form of economic incentives. Corporations themselves were invented to offer an incentive: protection of personal wealth from the liability created by an activity in which 'investments' were made. That's the whole rationale for "limited liability." It hasn't been enough. Wealth has held hostage entire populations to the sole purpose of increasing wealth.

So, where the "means" of incentivizing wealth in order to serve the "ends" of productivity where that productivity is compensated, the "means" has actually BECOME the "ends" and all labor is now viewed as merely the creation of more wealth in the hands of fewer and fewer. Wealth now serves itself, NOT the 'national' community. Companies close down not because people stop working - they close down because the 'wealth' (ownership) can find people working 'closer to the bone' and serve itself even more from their more extreme deprivation. Thus, deprivation itself has become a benefit to wealth - and anything that's of benefit to those in power will be spread and expanded.

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jwirr Donating Member (1000+ posts) Send PM | Profile | Ignore Tue Jan-02-07 01:59 PM
Response to Original message
10. Another good book on the origins of exporting jobs is "When
Jobs Disappear" by William Julius Wilson. He points out that is exactly what happened to inner cities when the jobs went to the suburbs and then south to cheaper wages and less regulation and finally to other countries with slave like wages and no regulations. It is from a different prospective than we usually talk about when we say "outsourcing".
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