A taxing issueTax | October 20, 2010 at 12:05 am
President Barack Obama has championed the cause of tax changes to the current US tax code in an effort to increase taxes on companies that go about exporting its jobs to foreign shores. For long now, there have been those that have decried the flight of jobs and capital to countries such as India and the Philippines and there have been voices (loud, clear voices) that have wondered why the administration wasn’t stepping in to try and stop this flight of jobs to non-American workers. Perhaps as a response to those exhortations or of his own accord, President Obama has finally spoken out against this phenomenon that is a reality of our and will now hopefully set the ball rolling for tax reforms that will not only swell America’s coffers, but also hopefully create more jobs on American soil.
Unemployment is touching close to 10% as of now across the length and breadth of America and that number soars even higher if you start to factor in those that are either working part-time as a stop-gap measure since they can’t get a full-time job and those that are under-employed (i.e., working a job for which they are over-qualified and most likely underpaid). The US tax code as it currently stands is encouraging the creation of jobs overseas and with the midterm elections looming around the corner, this is seen by many as a populist measure by President Obama aimed squarely at wooing voters. Billions of dollars have been given away by way of tax breaks and the aim now is to try to create more job jobs within the United States and to encourage companies to invest more on American soil in an effort to alleviate the issues that ail the American economy.
In his weekly address, the President said that a large number of businesses that do take their business abroad make a contribution to the American economy and while that is all well and fine, there seems to be “no reason why our tax code should actively reward them for creating jobs overseas.” In the wake of an economic recovery that has been barely that and in the face of economic growth that has been lethargic (to go with the pre-existing problems of unemployment and immense government debt). As things stand, analysts opine that the public’s support is with the Republicans, a sentiment that should help them gain a larger foothold within Congress if not full-blown control in itself.
That is something that should worry the Democrats, but this is not a time for petty politicking. Some of the policies that have been pursued over the years have not benefited America at large; its workers, its businesses and its economy has suffered in the bargain and hopefully this amendment to the tax code will go through, offering some relief to a stricken America.