Bailout idea

[KEVWYO]

Originally Posted by Hooz

I agree with most everything you said.

The main reason for outsourcing besides cheaper labor is lower taxes. McCain beat the corporate tax drum through his entire campaign and, to a point, he was right. Why would a company stay here and pay a 39% (and soon to be even more if the Dems get their way) corporate tax when they can go to Mexico and pay 29%, Hong Kong at 16.5% or Ireland and pay 12.5%. There is more at work here than just the cheap labor, and until the government does something about corporate taxes there will be little incentive to keep jobs here.

Throw in what I said about unions in my last post and it starts looking pretty bleak.

So would my idea in the OP work if I were to add a decent reduction in the corporate tax and perhaps a tax credit for each job kept in the US?

I understand what others are saying about it being cheaper and better for the company bottom line to outsource but it's not good for America. Doing what's good for America ... ie Patriotism seems to have become a four letter word.

[ichy_trigger]

Originally Posted by KEVWYO

So would my idea in the OP work if I were to add a decent reduction in the corporate tax and perhaps a tax credit for each job kept in the US?

I understand what others are saying about it being cheaper and better for the company bottom line to outsource but it's not good for America. Doing what's good for America ... ie Patriotism seems to have become a four letter word.

Im all for keeping jobs at home but the only way to do that is to provide the companies tax incentives. Look at it like this, lower their tax to keep them here or raise it to a point where they move elsewhere and then we loose jobs AND tax money.

[ForTehNguyen]

you cant force people to hire american workers, you can only entice them by keeping taxes low so the factories and buildings stay in the US therefore hiring American workers. Who is the govt to say who I can and cant hire, thats silly. If you want the business to generate the most money therefore increase tax revenues paid to the govt, you need to let them do it their way, not the govt way.

[jaydog]

Kev,

The problem that I see with your proposal is that it seems to be focused on the problem of how to create more jobs in the US, not on the underlying problems that are causing these companies to be able to not compete successfully in the marketplace. It's their own failure to be able to steer their businesses in ways that allow them to compete successfully that have driven them to a state of financial breakdown that is prompting their request for a "bailout". If we give them more money, but they don't address the fundamental issues of bloat and poor operational practices - what will we have done except help them continue to fail? I'm dubious that government intervention can force them into a position of success. If they're left in the "sink or swim" position that they put themselves into the market WILL solve the problem. If they make smart moves they'll succeed, if they don't, they'll leave new opportunities for other companies to try.

It's disingenuous to label a lack of desire on anyone's part to help them continue to fail as unpatriotic. If we have to help everyone that wants to do something but doesn't know how to do it well - we're set up for failure from the beginning.

[AwPhuch]

The Master and Overlord Obama is ready to appoint an Auto Czar.
And the lame-duck George Bush is going along.
God save us from bipartisanship.

[Brickboy240]

Currently, I don't believe there is much or any oversight on most of the bailout monies being given out...is there?

As if the bailout itself is not bad enough....Pelosi and Reid don't seem too intent on having strict oversight and what is to stop any future "AIG-like" nonsense or wasting of this bailout money on things that are not necessary or helpful?

This is what is truly needed...in all actuality, we cannot stop jobs from going overseas. However, making the business climate MORE enticing rather than more RESTRICTIVE (as the Democrats plan) would probably ensure that more jobs stayed here in the USA. Its simple: make it harder on wealty business owners and they'll pick up their toys and leave for greener pastures. DC cannot get their heads around this...but its a cornerstone of a truly free market.

But you voted for "change"...right? Well...you'll get change..but maybe not change that will agree with you.

LOL

- Brickboy240

[jaydog]

Even with oversight - I stand by my earlier statement - the government will never be able to force failing companies into a position of competitive success.

[ForTehNguyen]

go watch John Stossels segment on "Govt destroys everything it touches" on youtube

[nickb]

Originally Posted by KEVWYO

So would my idea in the OP work if I were to add a decent reduction in the corporate tax and perhaps a tax credit for each job kept in the US?

I understand what others are saying about it being cheaper and better for the company bottom line to outsource but it's not good for America. Doing what's good for America ... ie Patriotism seems to have become a four letter word.

No.

While there are many very poor people in India, and some of the richest in the world a really good annual salary there is right around $8000 I believe. That's about $4 an hour. How do you compete with that? $8000 grand will employ a fairly well educated person.

India has their priorities a little different when it comes to respect.

Teacher
Parents
God

In that order.

I'm going from memory, so someone with recent facts may be able to jump in.

India is just one example of the great disparity between what we make in the U.S. and what others make for the same work.

And Kev.....government is not the answer unless you need something destroyed and want to spend too much money destroying it.

[ForTehNguyen]

India's govt is on a higher level of nannyism than the US is. They actually debated using govt time if they were going to allow Pepsi and Kentucky Fried Chicken into the country. Both got in eventually but wtf you got people starving in the streets and they are debating if fried chicken is healthy or not. They do this with many things even upstart businesses, thats why that place is still 3rd world and impoverished. Many Indians fled to Hong Kong or the US and suddenly flourish, wonder why