New York:
President Obama says a way to kickstart the US economy is to discourage outsourcing. But now a Washington-based advocacy group is out to prove he is wrong.
A group of CEOs of companies like Hewlett Packard, IBM and Intel are working the phones, lobbying members of Congress against a proposed new law that ends tax incentives to firms that create jobs overseas.
"What makes a good sound bite is not necessarily good policy you know. He often says these are policies that send jobs overseas. We firmly disagree with that. They actually create jobs here in the United States," said Jonathan Hoganson, Deputy Executive Director, Technology CEO Council (TCC).
To prove their point the TCC commissioned a report looking into the Obama administrations claims.
According to the study, conducted by the American Enterprise Institute, the policy would result in a job loss of as many as 2.2 million Americans.
And investments in the US in plant, equipment and property could fall by as much as USD 84.2 billion.
"If you carry through these foreign tax proposals you will make US MNC's uncompetitive. That will have an effect not just on the operations abroad but also on the US domestic jobs and wages which is counter intuitive to what the administration thinks it is doing," said Aparna Mathur, Research Fellow, American Enterprise Institute..
In his first six months in office, President Obama has struggled to reconcile campaign rhetoric with the reality of leading a country where business enjoys massive influence. In a country that is one of the biggest beneficiaries of free trade and globalization it was perhaps only to be expected that his proposals on outsourcing will be met with strong resistance from lobbies on capitol hill.
A group of CEOs of companies like Hewlett Packard, IBM and Intel are working the phones, lobbying members of Congress against a proposed new law that ends tax incentives to firms that create jobs overseas.
"What makes a good sound bite is not necessarily good policy you know. He often says these are policies that send jobs overseas. We firmly disagree with that. They actually create jobs here in the United States," said Jonathan Hoganson, Deputy Executive Director, Technology CEO Council (TCC).
To prove their point the TCC commissioned a report looking into the Obama administrations claims.
According to the study, conducted by the American Enterprise Institute, the policy would result in a job loss of as many as 2.2 million Americans.
And investments in the US in plant, equipment and property could fall by as much as USD 84.2 billion.
"If you carry through these foreign tax proposals you will make US MNC's uncompetitive. That will have an effect not just on the operations abroad but also on the US domestic jobs and wages which is counter intuitive to what the administration thinks it is doing," said Aparna Mathur, Research Fellow, American Enterprise Institute..
In his first six months in office, President Obama has struggled to reconcile campaign rhetoric with the reality of leading a country where business enjoys massive influence. In a country that is one of the biggest beneficiaries of free trade and globalization it was perhaps only to be expected that his proposals on outsourcing will be met with strong resistance from lobbies on capitol hill.
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