Stepping up his campaign against outsourcing, President Barack Obama said America, which lost 8 million jobs during the recession, needs to to establish a new minimum tax on foreign earnings to discourage large US firms from shipping jobs to countries like India.
"No company should get a tax break for outsourcing jobs. Instead, tax breaks should go to manufacturers who set up shop here at home. Bigger tax breaks should go to high-tech manufacturers who create the jobs of the future," Obama said.
according to one of the leading media house, "Yesterday's release of the White House "Business Tax Reform" marks a watershed in the corporate tax debate. Now nearly everyone acknowledges that U.S. corporate tax rates hurt American companies. The headline that President Obama wants voters to see is his new top statutory rate of 28%. If only the story ended there . . .Alas, his reform is stuffed with so many offsetting business tax increases that the overall impact of this and other proposals would make the U.S. tax system less globally competitive and raise effective tax rates above what they are today."
The plan underscores Obama's interest in spurring "insourcing," or the return of previously outsourced jobs.