Foreign tax deferral is one of the real crimes in the tax code. John Kerry is right to eliminate it for companies that export jobs. While corporations that create jobs in the U.S. have to pay regular tax rates, runaway corporations that ship jobs overseas effectively pay no taxes on their foreign income—in fact some of these job exporters are even subsidized by the U.S. Treasury.
The difference between John Kerry and this administration on exporting jobs and taxes is clear: John Kerry wants to eliminate tax subsidies for shipping jobs overseas; George Bush wants to expand them—he laid out his plan in last year’s budget proposal.
This administration’s number one export has been good American jobs—we’ve lost nearly 2.8 million manufacturing jobs under his watch. We need to export our products, not our jobs. John Kerry’s plan would help put the manufacturing economy back on track. In addition, we need to examine harmful U.S. trade policies, the cost of health care, and other incentives that employers have to ship jobs overseas—issues I know John Kerry will be addressing in the coming weeks.
Contact Suzanne Ffolkes 202-637-5018
