rdubnpk I was watching an interview the other day and a CEO was asked why many of the jobs were going overseas. The answer was because that's where the qualified, educated candidates were to be found. So we are back to indicting our educational system for not doing its job while using it as the main whipping boy for budget cuts. Do you see how it all comes around??
Actually I've worked in the international tax area and the only reason the taxes are so high right now is that they didn't pay any taxes on those funds years ago. Decades of non-payment of taxes can result in some pretty hefty tax bills today. I have no sympathy for a Bill Gates who brags about his charitable giving while moving jobs to India. Have you ever called Microsoft's help line? If you have you know what I mean. GE is another big offender as is Tyco and most of the Fortune 500. We reward those who send jobs offshore and penalize those that leave the jobs here. It doesn't make any sense.
Interesting that the CEO made that comment when there was an article that I just read about how 40% of all post graduate business students are now Asian born females. I guess that CEO wasn't looking at them.
If I thought for a minute that increased funds to our educational system would result in a greater education being provided to our students (end users), I'd never be "for" cutting said funds. If they're claiming that, though.....they're not doing a very good job of proving it.
Our basic educational system has failed and will continue to fail until someone in education becomes accountable. A bad teacher will still have a job for life and that is just plain wrong. I don't understand how we think teachers can teach the free enterprise system when they refuse to subject themselves to it.
Yeah.....My new sales team isn't producing. I've tried giving them raises and increased benefits....hoping that would inspire them to greater results. But, they're just not coming (improved results). Think I should give them more money? What? Fire them and hire a competent sales force? What sense does that make? (please note intended sarcasm) And, before a teacher jumps my ass, my analogy was the entire educational system.....not just singling out teachers.
The point being that in some areas, namely business schools, we are still the best in the world. The CEO was using the education as a scapegoat for what is just simply cheaper labor.
We reward companies that send jobs overseas by allowing them deductions for those wages and, if those wages are subjected to employment taxes in the other nation, we also allow them to take a credit against their US taxes for the taxes paid offshore. In other words the taxes the multi nationals pay to foreign governments do not cost them a dime. The American taxpayer foots the bill by giving the multi nationals those taxes back. Contrast that with employing someone in the US. First off we have to pay FICA and Medicare taxes that total 7.65% and unemployment taxes that can be as high as 10%. So an onshore employee costs between 10 and 20 percent of their wages while the offshore employee costs the multi national nothing above and beyond the wages paid which can literally be pennies a day. If you didn't see the article, the US government is suing Boeing because Boeing wants to locate a manufacturing plant in South Carolina. Why? Because South Carolina is a right to work state and the unions, which so wholeheartedly supported Mr. Obama, don't want non union employees in South Carolina to make Boeing more competitive. If Boeing had put those jobs in China, you wouldn't have heard a peep out of Washington.
