More Government

 

"The Bring Jobs Home Act, introduced Thursday by Rep. Bill Pascrell, D-N.J., provides a 20 percent tax credit for businesses that “insource” jobs back to the United States and is paid for by closing tax loopholes for companies that “outsource” jobs overseas and treat distributions of debt securities in a tax-free spin-off transaction in the same manner as distributions of cash

or other property."

Washington, D.C. (July 19, 2012)

Excerpted from article by Michael Cohn  from  "Accounting Today for the Web CPA"

A recent initiative in Washington has proposed to give incentives to businesses that move jobs back into the U.S. These businesses are currently, and have historically, gained tax incentives on top of the savings of paying a non-U. S. workforce, for moving jobs offshore. On the surface, it looks like a good idea to reverse the policy, right? After all, we should encourage businesses to keep those jobs here!

Let's take a look at the ramifications of these policies. American tax dollars were taken from us, and given to companies to help move jobs offshore. In the process, Americans lost jobs, therefore, the tax dollars given to the businesses were coming from a shrinking source. Now the brilliant minds that gave us that failed policy want to take more money from the few of us left with jobs, and give it to those same companies , to help them move those jobs back here.

Don't let talk of “closing loopholes” to pay for the program fool you. Closing a loophole does not generate income. Taxes generate income. In order to pay for something, one must have income. They are trying to pick our pockets to pay off the thieves who picked our pockets last time. In an election year. How much of the money they send to these companies comes back to their campaigns?

The point is, we have let the government take too much control over our money, our business, and our lives. If there had been no incentive for the jobs to leave, they would still be here in the first place. Why let the agent of the destruction of our economy dictate the terms of its recovery?

Look at it in terms of your own life. Picture yourself working at a job with dozens of co-workers. They all move across the street to a competing firm, and a portion of your wages is now taken to cover a portion of their wages, while you are left to compete with them. The current proposal would take more of your money and give it to your firm to move the jobs back. If more government regulation is the answer, you are asking the wrong question.