I have three recommendations here which either fairly and wisely raising tax revenues from companies that move US jobs overseas or which give tax incentives for companies that do the reverse and move overseas jobs back to the US. Yeah, this is both a carrot and a stick approach.
First,
as a disincentive for Big Corp offshoring of US jobs, I think all
separation costs and all other costs, resulting from a plant closing or
other US business closing, or in which a US plant or other US business
is moved offshore, should not be deductible for US federal income tax
purposes by the corporation moving its US plant or other US business
offshore. This recommendation is included in the President's Framework for Business Tax Reform.
Second, as another disincentive for Big Corp offshoring of US jobs, the US Big Corp manufacturer moving its plant
overseas should get a reasonably computed and fair tax recapture of its
very lucrative Domestic Production Activities Tax Deduction for all past years in which
it received this very lucrative tax deduction (this tax deduction
started in 2005).
I find it hard to understand how US Big Corp
manufacturers can think it’s perfectly all right to continue to reap the
enormous tax benefits from the Domestic Production Activities Tax
Deduction, and then to coldly close US manufacturing plants by moving
them overseas to a low wage, low environment standard, and/or low-taxed
foreign country.
So, US citizens pay twice. First, they help
finance these substantial Domestic Production Activities Deduction tax
subsidies granted to US Big Corp Manufacturers. And then, they
subsequently lose their jobs when these same manufacturing companies
move their jobs overseas.
And then to pour salt on their open wounds, these same
US Big Corp Manufacturers are now lobbying intensely for an 85% US tax
holiday on their foreign earnings repatriation. Just incredible
heartless greed.
And then third, as a keen incentive for US companies to move their foreign jobs back to the US, companies doing so should get a 20% US Federal Income Tax Credit for the expenses of moving operations back into the US, as is recommended in the President's Framework for Business Tax Reform.
The overall net effect of these three proposals here is that there will be a very significant increase in US Tax Revenues, and thus also a like amount of very significant reduction in the US Debt.
And this is another case where a proposal that reduces the US Debt is also a significant higher-paying, full-time US job creator.
