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Before anyone gets the urge to

Posted By: Researcher on 2009-04-18
In Reply to: Tax breaks to companies that outsource overseas... tic tic tic - Stop the Insanity

lay these offshore tax breaks at the feet of Bush or any single president of either party: 


The tax code favors foreign investment because we have the highest corporate tax rate in the world.  In addition to lower wage costs, they pay a lower tax in foreign countries. This encourages investment in expansion of the business in those countries.  No President is to blame, this "Active Foreign Income" part of the code hasn't changed since in was enacted in early 1900s. Payment of tax when profits are brought to the U.S. but ends up being favorable to the outsourcer through various provisions of the code. 

 

So, can't blame anybody but every Congress, since they've failed to change it. It's those wonderful guys in Congress, once again, who are always looking out for the little guy.

 



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