Barack Obama cracks down on offshoring firms
US President Barack Obama on Wednesday reiterated his opposition to outsourcing saying there will be no tax cuts for companies outsourcing work to other countries. Yashwant Raj reports. See cartoonUpdated: Sep 10, 2010 02:50 IST
Here comes another blow against outsourcing.
US President Barack Obama on Wednesday reiterated his opposition to outsourcing saying there will be no tax cuts for companies outsourcing work to other countries.
"For years, our tax code has given billions of dollars in tax breaks that encourage companies to create jobs and profits in other countries,” Obama said, adding, "I want to change that."
"Instead of tax loopholes that incentivise investment in overseas jobs," Obama said in a speech in Ohio, "I’m proposing a more generous, permanent extension of the tax credit that goes to companies for all the research and innovation they do right here in Ohio, right here in the United States of America."
The significance of the location can’t be lost. On Wednesday reports came out about Ohio banning outsourcing of work funded by government in an executive order issued by governor Ted Strickland in August.
"We are against such restrictions," the US-Indian Business Council told HT. "And we would want to see more written and said about jobs being created in the US by companies from overseas, including India."