https://www.foxnews.com/politics/gop-senator-drops-hammer-companies-shipping-jobs-overseas-crucial-bill
17 replies (most recent on top)
Let’s hope something will put money back into the Social Security fund being depleted by offshoring.
At the end of the day, taxes (tariffs) will be levied against foreign workers in other countries. Banks have big lobbies, that is true. But the gov needs money, and what is easier than raising taxes on non constituents. Having your customers in the US while your employees are not is a loophole. Loopholes don't last. They will probably make it slightly cheaper to hire foreign workers, but then will any additional infrastructure it will work out the same. The gov has never left money on the table when they can tax it. Never. it will start with a small tax. 10%. It won't stay there. It never does.
The definition of “outsourcing” here matters. When American Company A opens an office outside the country and hires workers on, that’s not outsourcing - it’s multinational presence.
When American Company A starts a contract with Cognizant or InfoSys and those roles get filled outside America, that’s outsourcing. This won’t even be a blip to the American Company but it will cut into the profits of the outsourcing companies, or more likely the wages of the people they hire.
If you ask an Indian programmer to install an electrical outlet in a bathtub, they will do it and worry about the consequences later.
Needs to be 150% or more.
This makes more sense to me than trying to bring back manufacturing. Oversees can keep the t-shirts, stuffed animals and plastic combs pridution. US should try to keep as many "white collar" jobs as we can even including call center roles. Would go a long way for customer service and business in general as well.
It’s really simple, the US should not be importing H1Bs / outsourcing, especially in a terrible job market like now. However, the banking lobby has a great deal of influence, so nothing will happen.
Phukk Phoxx News....
In spite of the absolutist prognosticators, it would have an impact, just not as much as needed. There's always decisions made on this kind of thing that are closer in costs then the averages suggest. It would price some businesses 'out of the market'.
More importantly, even if outsourcing was completely illegal, it wouldn't save most of us. Shart is he-l bent on eliminating what he considers to be a tainted work force. If you've been here more than a year or two, you're part of the problem in his eyes. Even if your only crime is remembering when this used to be a good place to work, your employment is unacceptable to him. Outsource, contract, or simply conjuring up excuses to term people, he'll get his way one way or another.
@a6 already happening. Posted for stateside, overwhelming number are India.
25% tax on outsourcing payments?
Considering the ballpark number used here to estimate offshore salaries, even at 33% of the US worker's salary, a 25% tax isn't going to slow it down one bit.
US worker = $100k
India worker = $33k
25% of $33k = 8.25k
After the maths
US worker = $100k
India worker = $41.25k
This is simply to raise more revenue to pay for their tax cut for the ultra-wealthy, this does nothing to stop offshoring.
tax should be equal to (US equivalent salary - Offshore salary) * 1.25
Nice idea, but nothing will come of it....sad.
Near the top of the article it says that the bill calls for a 25% tax on outsourced labor.
While I absolutely applaud the spirit of the bill, I'm not sure that 25% will be enough to motivate WF to stop the offshoring mayhem. I think the percentage would need to be at least 50%, if not 100% or more.
India salary + 25% tax = still cheaper than US labor. The quality of the labor isn't identical but C suite doesn't care about that, until a huge scandal hits, and then it's "how could this have happened?!" 😐
But I am happy for the attention this is finally starting to get in the news. It's not just Congress that's been silent on it, but the entirety of the media too.
That's ok. We can bring them over on H1B visa's instead.
A pro-worker, anti-corporate bill coming out of the GOP? Consider me skeptical on many fronts.
Not to be that guy, but it’s about time.