Thursday, May 7, 2009

Silicon Valley: Leave Our Outsourcing Alone!

By Robert Gammon
Thu, May 7, 2009 at 12:19 PM

Silicon Valley execs met with President Obama's financial guru Larry Summers to complain about the administration's plan to clamp down on tax breaks they receive for outsourcing, according to the Chron. Obama believes that current tax law encourages outsourcing of jobs overseas, so he wants to limit the deductions that companies can take on hundreds of billions of dollars in foreign-earned income. But the Silicon Valley execs, who got the meeting with the help of Senator Barbara Boxer, maintain that the increased taxes would make them uncompetitive with Chinese companies. They're probably right, but the answer is not to continue their fat tax breaks, and thereby send more jobs overseas. In fact, we should be doing the opposite. We should be giving more tax breaks to American companies that don't outsource. That way, it will help them be more competitive and encourage them to keep jobs here at home.


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