No more Twinkies - Hostess out of business

[Cannon Shell]

Originally Posted by Rupert Pupkin

I was simply saying that there needs to be some type of incentive for these companies to stay here. You could raise taxes on companies that outsource. You could lower taxes on companies that don't outsource. I don't care how they do it. They just need to do something that makes it beneficial for companies to stay here and not outsource.

The raise the taxes theory on outsourcing companies is a losing solution. Many corporations will just set up more foreign networks, subsidiaries, divisions, etc which will of course drive up consumer prices which of course hurts that same middle class that everyone wants to prop up. The reality is that there is a reason that jobs are outsourced and for the most part it is profits. Punishing business may simply lead to business relocating with more stringent regulations being a factor as well. Corporate tax rates in the US are high already compared to other industrialized countries despite the rhetoric to the contrary. Hell we see states undercutting other states by offering tax inducments and other incentives to get business to relocate within the US.

The best way to reduce outsourcing is grow our own economy because the worse the growth is the more appealing outsourcing becomes. Of course that isnt easy to do especially when the govt appears to be wanting to enforce growth prohibiting practices and the global economy is still so shaky (our own issues contributing to that as well)