Outsourcing, unemployment, taxes etc.
There are lots of discussions around the blogosphere on the outsourcing of US jobs to India.
Bush gave massive tax breaks to the rich who are spending their windfall in overseas investments, creating jobs everywhere but here and leaving American workers with dirt, basically. Outsourcing is the most visible symptom of what is bad all around.
Another interesting logic given by Jon H for offshore outsourcing:
The tax code is written in a way that allows companies not to pay the full 35% U.S. corporate tax rate on foreign income when that money remains invested overseas.
Do the math yourself. Which is better?
� a) A factory in Lowell, Mass., that will generate $100 million in pre-tax profit that nets $65 million, or
� b) A factory in Lowtaxistan that will generate $100 million in pretax profit that nets $80 million.
Yes this is more visible via this graph.
Read the report.
Dave writes an intersting post about how the poor and middle class people of Michigan are being taxed in all aspects and forced to go to other States because of unemployment.