Obama urges CEOs to Hire
- Thread starter Rashid_G.
- Start date
Creating US Jobs requires new and different tax incentives:
Govt should provide a tax credit of 200% of the total cost for each full time US employee up to $100k per employee. This is the only way to even the playing field with outsourced labor. Eliminate pass through income treatment of LLC's and S-corps and have all entities taxed at the same rate as individuals.
If a corp wants to reduce their tax liabilities and increase profits they hire US based workers.
Govt should provide a tax credit of 200% of the total cost for each full time US employee up to $100k per employee. This is the only way to even the playing field with outsourced labor. Eliminate pass through income treatment of LLC's and S-corps and have all entities taxed at the same rate as individuals.
If a corp wants to reduce their tax liabilities and increase profits they hire US based workers.
exactly right!!!
Once you have the nice house, cars, cell phones, entertainment, there is no such thing as moving a step or two down. Thats why this economy is in trouble, no can live within their means today. They need the new car every 2 years and the latest tech gadget even if it still works perfectly.
That will never happen.
As I keep saying the millions of jobs created over the last 10-20 years have been during the biggest boom times for this economy. The problem with that is that each of these boom times in the economy have been nothing more then asset bubbles that come and go nearly every 2-3 years. This economy cant grow naturally anymore, its all done through the creation of creating jobs during times when bubbles are forming, yet no one has any understanding of this. Why no one understands this baffles me to no end. Those millions of jobs lost over the last 3 years were only here because of the credit boom in our economy, without the credit expansion, easy money policies and liquidity within the system these jobs would have never existed. This economy is done growing organically its only done now through free handouts and asset bubbles.
I think Obama should focus on creating 'overseas' jobs for Americans.
I read an interesting piece. Basically the major tire factories set up shop in China BUT with the agreement they had to export all of the product.
Must be a heck of a savings to mfg something 7k miles away, have it shipped and sell it cheaper than if we mfg tires here in the US, the differential in labor cannot that great.
Must be a heck of a savings to mfg something 7k miles away, have it shipped and sell it cheaper than if we mfg tires here in the US, the differential in labor cannot that great.
The Hell it can't! American workers, especially union ones, expect the equivalent of $47/hr in wages, health and retirement benefits. Chinese workers toil for $1-ish/hr.
This wage differential is one of our biggest unemployment factors.
What kind of "stimulation/incentive" does it take to overcome such a disadvantage for American workers? (Much, MUCH more than anything American monetary and fiscal policy has done so far, that's for sure.)
I think he's right...its not just the cost of labor. In fact the American worker is still the most productive in the world. If it were just based on cost of labor, we would not have so many jobs going overseas. Take a look at #4 below. I bet that has a lot to do with govt regulations.
Top Ten Outsourcing Survey
Executive Survey: The Outsourcing Institute's Annual Survey of Outsourcing End Users
Top 10 Reasons Companies Outsource
1. Reduce and control operating costs
2. Improve company focus
3. Gain access to world-class capabilities
4. Free internal resources for other purposes
5. Resources are not available internally
6. Accelerate reengineering benefits
7. Function difficult to manage/out of control
8. Make capital funds available
9. Share risks
10. Cash infusion
Here is the problem. For the past 4 years (since the Dems took congress), Obama, Reid and Pelosi have been threatening businesses and their owners with increased taxes on virtually everything.....
-Higher income taxes for those making >$250k
-Higher corporate taxes
-Higher capital gains taxes
-Cap & Trade (huge tax to businesses)
Health care reform was jammed down our throats. This version will decimate the retail/service sector. Anything with a very low per/person profit margin, such as restaurants, etc will be crushed by that legislation.
None of these things are helpful to businesses thinking about hiring. They see that these things will also decrease demand for their service/products down the road.