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No tax incentives to companies who outsource: Obama

Updated - 9/9/2010 - thehindu.com.

 

Amid indications that outsourcing could become a hot issue in the November polls, President Barack Obama has made his stand on the issue clear, saying that tax breaks should go to companies that create jobs in the U.S. and not overseas.

Mr. Obama’s comments came close on the heels of the Ohio state Governor passing an executive order to ban outsourcing, a development that has raised concerns in India that is often described as the world’s back office.

Significantly, Mr. Obama’s policy speech on economy came in Ohio itself, where he made clear his determination to end tax loopholes that provide incentives for investment in overseas jobs, saying he will provide a generous tax credit to companies that create more jobs in the U.S.

"One of the keys to job creation is to encourage companies to invest more in the United States. But for years, our tax code has actually given billions of dollars in tax breaks that encourage companies to create jobs and profits in other countries," Mr. Obama said at Cleveland.


Read more: www.thehindu.com/news/international/article622954.ece

 

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