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Obama Calls for Tax Breaks to Return Jobs From Abroad

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  • Obama Calls for Tax Breaks to Return Jobs From Abroad

    Obama Calls for Tax Breaks to Return Jobs From Abroad
    By MARK LANDLER
    Published: January 11, 2012

    WASHINGTON — President Obama said on Wednesday that he would propose tax incentives for companies to bring home manufacturing jobs they had moved overseas, and curtail tax breaks for those that keep relocating jobs abroad.

    Flanked by executives from the aerospace, chemical and furniture industries — all of whom are building or expanding factories in the United States — Mr. Obama declared that the nation was beginning to see the reversal of a long-term trend toward outsourcing. He called the new trend, perhaps inevitably, “insourcing.”

    “We’re at a unique moment, an inflection point, a period where we’ve got the opportunity for those jobs to come back,” Mr. Obama said in the White House, after meeting with the executives. The American economy, he noted, has added manufacturing jobs for two years in a row, after more than a decade of losses.

    The president did not offer details of the tax proposals, which presumably would be subject to approval by Congress, though he renewed his call on lawmakers to approve a one-year extension of the payroll tax cut that will expire at the end of February.

    Mr. Obama said an increase in labor costs in China was eroding its advantage over the United States as a manufacturing base, a message the White House sought to buttress by circulating a research report from the Boston Consulting Group, a prominent management consulting organization. The president also said recent trade agreements with South Korea, Colombia and Panama would open markets for American exports.

    Economists said small changes in tax policy would play only a marginal role in deciding where companies build factories. But with labor costs rising overseas, such changes could help reinforce a fledgling trend, they said. “There’s been a little bit of momentum on ‘insourcing’ because a lot of firms overdid it,” said Jared Bernstein, the former chief economic adviser to Vice President Joseph R. Biden Jr. “So it could help a bit at the margin.”

    Mr. Obama cited examples from companies represented in the room: Ford Motor, which the president said had moved 2,000 jobs back to the United States; Master Lock, which relocated manufacturing to Milwaukee from China; and Lincolnton Furniture, a specialty manufacturer, which set up shop in North Carolina after its owner, Bruce Cochran, closed a family-owned furniture company in 1996 and spent time consulting with companies about moving operations to China and Vietnam.

    “I don’t want America to be a nation that’s primarily known for financial speculation, and racking up debt and buying stuff from other nations,” the president said. “I want us to be known for making and selling products all over the world stamped with three proud words, ‘Made in America.’ ”

    Mr. Obama’s message served as a riposte to the Republican front-runner, Mitt Romney, who repeated his charge Tuesday, in his speech after the New Hampshire primary, that the president was hostile to free enterprise.

    One of the executives at the meeting, James M. Guyette of Rolls-Royce North America, said his company was making investments in Indiana, where it builds aircraft engines, and in Virginia, where it opened an advanced manufacturing and research campus last year that will eventually employ 500 people.

    In an interview, Mr. Guyette said Rolls-Royce was not actually moving operations back to the United States. But he said it was pouring money into American operations, like a factory in Indianapolis that once had the company’s highest labor costs and lowest productivity. Negotiations with the United Automobile Workers union had cut those costs, he said, and made the factory competitive again. “Everyone could see where this road was going to end, if we didn’t do it differently,” he said.

    http://www.nytimes.com/2012/01/12/bu...om-abroad.html

  • #2
    well Obama's huge stimulus and bail out didn't work and put this country in a huge hole financially......its an election year so now they are desperate to look like this administration is doing something but like the Pat Benatar song from the 80's: " A LITTLE TOO LATE".


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    • #3
      now Obama wants to raise the debt ceiling more so he can spend more and keep raising the debt...and we want 4 more years of this?
      This is what the whole fight is with congress....Obama wants to raise the debt ceiling higher but he doesn't want to cut spending.He thinks by spending more it will create jobs and it won't, he already tried that and wants to keep doing it.



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      • #4
        i agree that we need to reduce spending to an extent but we need to increase revenues to or as reagan called it "revenue enhancement." we can't pay down our debt by reducing taxes, increasing defense spending and forcing the poor to check into the emergency rooms to cure severe diarrhea.

        we need some money coming in. the economy was wrecked between january 2001 and 2009 and we republicans and democrats tried stimulus efforts. they didn't have the desired effect and the debt will drag us down if it isn't addressed. the only way to pay your bills is with revenue. we can't barter for old pumpkin pie filling - no matter how much is in the cabinet.

        i agree he should have addressed this earlier, but if it works before the 2012 elections then it does. having job growth is a great way to secure our financial situation no?

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        • #5
          you create jobs and more revenues by cutting taxes across the board and cut regulations.......so everybody can invest in the market so we can compete in this global economy.

          But we have to stop feeding the beast and cut government spending....that's the main problem..

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          • #6
            the problem with Obama is he doesn't understand the free market and how jobs are created in the private sector.....He wants to raise the capital gains tax to 30% for everybody......is he clueless?

            Capital gains tax is at 15% for everybody and that's after it has been tax at 35%........investors from all classes invest in the market and companies to create jobs and grow the economy and they take the risk to invest in the market..they might lose it all in a bad economy.....now Obama wants to scare them with a 30% tax rate after they have paid 35%.....and this is the way he thinks jobs will be created.....who is going to invest with a 30% tax rate after the government takes 35%?........LOL

            and he lies about capital gains tax and Warren Buffet.......Warren Buffet pays 15% on his return in investment but the government already took 35%........these people have no idea how the free market works.....they believe in high taxes, big spending and that government creates job by distribution of wealth. Thats the reason the bail out hasn't work and it wont work.


            there is a difference between payroll tax and capital gains tax.......Obama lies about that and pushes this class warfare debate.......that's not how you create jobs in the private sector.



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            • #7




              Mayor Michael Bloomberg and President Barack Obama

              NEW YORK (CBSNewYork/AP) – Mayor Michael Bloomberg dismissed President Obama’s proposal to raise taxes on people who make more than a million dollars a year.

              “The Buffett thing is just theatrics. If Warren Buffett made his money from ordinary income rather than capital gains, his tax rate would be a lot higher than his secretary’s,” he said.

              “I think it’s not fair to say that wealthy people don’t pay their fair share. They pay a much higher percentage of their income, they have a higher rate than people who make less,” Bloomberg added.



              expect a class warfare in the fall....that's how Obama will try to win re-election.....divide and conquer.....the 1% vs 99% but the problem is Obama is a millionare and part of the 1% his net worh is over 10 million.......how many 99% have 10 million?......LOL.

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              • #8
                In the private sector a small, medium and large business needs bank loans and investors so the company grows and hire people.....that is how the free market works.


                The Government already takes 35% from the business in payroll taxes......if there is anything left in profits it goes to the investors who took the risks to invest and to pay off the banks.....the government charges 15% on investors returns

                that is 50% in taxes the government collects.....fair???? oh nooo!!! .....Obama wants to raise it to 65% total by raising the capital gains tax to 30%....that means for every $1 earned in a business the federal government takes 65 cents......fair?

                and you wonder why the market hasn't recover yet and we have a high unemployment rate.....we have a President that doesn't understand the free market and how jobs are created in the private sector......he is good and creating government jobs and taking over companies with tax payers dollars but he has no clue how jobs are created in the private sector.

                and we want 4 more years of this?

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                • #9
                  Originally posted by MikeRavens View Post
                  you create jobs and more revenues by cutting taxes across the board and cut regulations.......so everybody can invest in the market so we can compete in this global economy.

                  But we have to stop feeding the beast and cut government spending....that's the main problem..
                  i disagree. all that trickle down stuff just doesn't work. we pumped huge amounts of money into the banks to give a jolt to the economy and we ended up with the great recession.

                  but don't take my word for it:

                  For most of the past 70 years, the U.S. economy has grown at a steady clip, generating perpetually higher incomes and wealth for American households. But since 2000, the story is starkly different. The past decade was the worst for the U.S. economy in modern times, a sharp reversal from a long period of prosperity that is leading economists and policymakers to fundamentally rethink the underpinnings of the nation's growth.

                  It was, according to a wide range of data, a lost decade for American workers. The decade began in a moment of triumphalism -- there was a current of thought among economists in 1999 that recessions were a thing of the past. By the end, there were two, bookends to a debt-driven expansion that was neither robust nor sustainable. There has been zero net job creation since December 1999. No previous decade going back to the 1940s had job growth of less than 20 percent. Economic output rose at its slowest rate of any decade since the 1930s as well.

                  Aughts were a lost decade for U.S. economy, workers


                  and take a tip from paul krugman when he said:

                  we should have been paying for these wars to begin with, right from the beginning. I mean, this was, if you want to talk firsts for Bush, this was the first time in American history that a president took us into a war and cut taxes.

                  PolitiFact | Krugman says Bush was first president to lead country into war and cut taxes

                  you need revenue to pay for things and when you increase spending with two wars? lol. if you don't increase revenues where will the money come from? lol! you just increase the defict and then pass the bill on to the next guy like reagan did to bush 1 and bush 2 did to... oh yeah... us...

                  you need to pay for your bills and throwing granny out on the streets is not the solution. decreasing military and defense spending is however a great place to decrease spending.

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                  • #10
                    that's what I said.....stop feeding the beast .....cut government spending and entitlements (hand outs)........raising taxes on the people that work, invest in the market and open business is not the recipe to create jobs.

                    Comment


                    • #11
                      Originally posted by MikeRavens View Post
                      that's what I said.....stop feeding the beast .....cut government spending and entitlements (hand outs)........raising taxes on the people that work, invest in the market and open business is not the recipe to create jobs.
                      lol!!!! uhhh, okay homie, but you obviously didn't read my post, because that's not what i said at all, but okay man.

                      i do agree with the part about cutting spending, though entitlements is not the only are that needs cutting and... (lol) read my post first. (lol)

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