Forum Post: How to Eliminate Outsourced Jobs Abroad
Posted 13 years ago on Oct. 7, 2011, 10:45 p.m. EST by Rainbowrider
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Lawmakers should pass a bill requiring a tax on all American companies that outsource jobs to other countries that is equal to the difference an American worker would have earned. This would encourage companies to keep jobs in America without compromising the so-called "free trade."
Or we could put the U.S. Customs Department back to work doing their job by taxing imports with import duties and bringing them equal to the purchase price of an equal product made in the USA. The only problem with making that work immediately, is that we have few USA products to compare them to, thanks to the free trade that we really do not have because it was taken away from us a long time ago.So to remedy this situation easily, we stop buying imported products immediately unless the purchase is absolutely necessary. We vote at the cash register with every purchase we make for only USA-made products or none at all. Large retailers have computer systems that will sense the change in consumer demand very quickly. And they will be looking for answers to explain the sudden changing demand. In the mean time, we buy resale or newly refurbished with warranty. This is because, when we buy resale or refurbished, the cash register does not ring up a vote for refilling inventory with another imported product to replace the new one that was just purchased. Most importantly, we avalanche email and call every major retailer we know daily, telling them that we won't be shopping at their store again until they provide a USA equivalent for every product that they carry. This includes clothing,housewares,sporting goods,appliances,furniture,tools and electronics. If we, as a nation, put our effort into this protest, major retailers would take that 3+ trillion their sitting on and invest it into American factories in order to steer business back through their doors and keep their stock prices from plunging.Most major retailers are the manufacturers of many of their products. They can open and close factories anywhere, depending on what the consumer demands are. If U.S. Customs does their job and imposes high duties on imports at the same time, major retailers and other manufacturers won't have a choice but to meet consumer demands and keep their doors open for business.
If you are a US based corporation earning income abroad you should be taxed at the US corporate tax rate and not be allowed to repatriate your earnings at a 5% tax rate (aka the "tax holiday," no fucking way). People (and organizations) respond to incentives, labor is cheaper abroad, and since organizations can keep income abroad without it being taxed, they are going to exploit both of those things. We don't have too much control over the former (labor being cheaper elsewhere), but to counter the latter point, US corporations should pay the US corporate tax rate.
We actually can impose control over all of it. Why?Because the US consumer is the end destination goal of every manufacturer. We are the only consumer base in the world that buys at the level we do and at the prices we are willing to pay. The only other market that comes close is that of the European Union but they have fairly strict importing policies to protect their manufacturing jobs. Asian markets are large in numbers of people, but not in terms of individual buying power. As the dream goal of every importer and retailer, that gives us tremendous power in changing what we must. Has anyone heard of the novel idea of competition? Force them to compete against each other for our vote at the cash register. And of course, if they are selling products here, they first need to be registered as a USA company and pay corporate income tax on all USA sales and later,personal income tax for their individuals.Just like any small business does.
how will a company be profitable if they are charged a tax such as the one proposed. Big corporations get away with a lot of stuff with their strong lobbies and control of media. It is a testament to their powers that the 'Tea Party' which started as a spontaneous protest against the 'Hampton Crowd' got hijacked to be a political tool for the conservative america. Which way will this movement go ?
What is the Hampton Crowd?
Companies can still be profitable if those at the top were earning less.
Currently a CEO earns 458 times more than a production worker does, as opposed to 1970 when they earned just 34 times what a production worker did.
Are they 14 times more productive now than they were in the 70s? No, just greedier.
The workers and the shareholders have to pay for their multiple boats, private planes, numerous houses, kids ivy league educations, etc.
That's why I laugh before I cry about the tea party types who tell us how proud they are of driving a 19 year old car and earning 20K a year while they defend the banks & CEO greed.
It could also have the unintended consequence of causing the corporations to close down US operations and move to a foreign country in order to remain competitive in the world market. Then more jobs are lost. Government meddling in markets often causes unintended consequences.
If they were also told they couldn't sell their goods here, they would change their minds.
We are the market for their goods even though they are ruining our purchasing power by manufacturing overseas.
Quality post. Carry on.
Outsourced jobs are not the problem. Problem is the companies that choose to outsource so that they can improve their profit margin. And also this allows them to park a lot of their earnings abroad without paying taxes. It is just the alchemy of the oligarchy that the blame and anger is directed to some poor sod getting a dollar day in some third world country. Why do we not hold our corporations to account - why is it never asked why they cannot be profitable hiring people in america
Twould be nice. Sadly, all the tea party morons on this forum will shoot you down. Apparently free markets and sweatshops are democracy.
I've often asked free market advocates to point to a time in history when free markets actually existed.
I'm still waiting for a good answer.
The answer is never. However, the purest form of capitalism exists in countries were there are sweatshops. Maybe that's the reason they've never existed?
Sort of my point. They never have actually existed.
Which leads one to ask, what evidence is there that free markets actually work? If they have never existed, there can be no evidence that they work. The idea that free markets are the answer to what ails the world is simply a theoretical construct.
I think that we are in complete agreement. Sorry for any misunderstanding.
Outsourced jobs is part of the new reality, whether we like it or not.
It is lack of innovation that is in part hurting America. Our system and way of life for that matter is based on paper value and greed.
Mom and pop companies and the middle class are at the mercy of big corporations and protected interests of a few people.
The problem is not outside, is inside.