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Sheetal.Pandey
In this competetive market its very diffcult to avoid outsourcing looking at the ...
phoenixdave
I always worry when the government starts trying to "fix" things. They have a ...
Tech group opposes offshoring bill
Rick Merritt
9/27/2010 1:06 PM EDT
SAN JOSE, Calif. – The TechAmerica industry group has come out in opposition to a draft bill in the U.S. Senate that claims it will end the practice of offshoring jobs. A vote on the bill in the Senate is expected this week.
Richard J. Durbin (D-Ill.) and seven other Democratic senators sponsor the Creating American Jobs and Ending Offshoring Act (S. 3816) which was introduced in the Senate September 21. This legislation would, among other things, end tax deferral for so-called imported property income of controlled foreign corporations (CFCs).
“This legislation is misnamed, because it would eliminate American jobs, not create them,” said Phil Bond, chief executive of TechAmerica in a letter to members of the Senate.
“This bill would increase taxes only for U.S. companies operating outside of the United States, hindering their global competitiveness," Bond said. "Increased tax costs imposed only on U.S. companies would ultimately be borne by U.S. employees, customers, or shareholders through job losses, higher product prices, or lower stock values," he added.
TechAmerica argued that companies used the CFC model so they can better compete with foreign companies in other world markets.
"Companies that are successful overseas add jobs here at home, [and] those that fail to compete are bound to shrink,” Bond wrote.
TechAmerica has 1,200 member companies. It was formed by the merger of four groups including the AeA (formerly the American Electronics Association) and the Information Technology Association of America.


rick.merritt
9/27/2010 1:28 PM EDT
Are you familiar with this bill? If so, what impact do you think it would have?
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chanj
9/27/2010 3:21 PM EDT
Stop outsourcing has been a hot topic in the last few years. There is no doubt some jobs are going to be outsourced. It is inevitable for a country to move forward in technology. Does outsourcing impact your life as an engineer?
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pixies
9/27/2010 5:26 PM EDT
At the first look I thought this news is about off-shore drilling. Outsourcing is a result of globalization and optimal distribution of global resources. There really is little one government can do about it. And it will only stop when the destination nations of outsourcing are wealthy enough and the money and jobs will start to flow back.
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Job4US
9/27/2010 11:04 PM EDT
The title of this article misleads the reader. TechAmerica is a consortia of offshoring corporations - check the list, Microsoft, Boeing, Tata etc....The same companies that brought the USA record unemployment thanks to corporate greed and legal loopholes.
Ask any American Engineer (if there are any left due to offshoring) how they feel about the topic. American VOTERS hands down want to end the destruction of our jobs due to corporate greed fraud and abuse
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ADS2010
9/29/2010 3:26 AM EDT
Well - think again. Check out the universities and you will know who's leading the pack in engineering etc.,. The new economy jobs need either really well educated engineers, of which the US doesn't turn out enough. It also needs semi skilled labour to fuel growth of the service industries, and not many citizens want to do this work which actually suits their existing skills.
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http://www.lulu.com/spotlight/poconoarmchairreview
9/28/2010 12:52 AM EDT
Phil Bond, chief executive of TechAmerica, said, "Companies that are successful overseas add jobs here at home...."
So, all these CFC companies are uniformly unsuccessful overseas right now? Is that why there are no jobs in the US? Or, they are successful, and I am in the middle of a golden age of US prosperity and don't know it? (I must have misplaced the memo about that.)
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elctrnx_lyf
9/28/2010 4:59 AM EDT
If US imposes ban on off shoring then it is only advantageous to the the competitors form the other parts of the world. There is huge market for the companies to sell their products and there is enough skilled labor available to make the products. If Dell/HP doesn't want to offshore jobs in developing or manufacturing their products but want to sell their products then people will prefer samsung/Toshibha who can provide jobs. This doesn't just apply to computers but to any other electronic product.
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ADS2010
9/29/2010 3:15 AM EDT
This is really a cheap trick. Outsourcing or offshoring did not cause the market crash and was not the cause for job losses. The real cause was financial greed of just a 1% of American Wall Street guys. But they have always been too powerful to control, so the Democrats are looking for a diversion, else their supporters who expected to see them taks action against the erring will desert them in very large numbers. Wake-up guys start seeing the wood from the trees.
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phoenixdave
9/29/2010 6:03 PM EDT
I always worry when the government starts trying to "fix" things. They have a way of coming back and biting the people they were intended to help. Lets see, the government bailed out banks and put in new regulations on fees, so the banks just start charging fees for other things no restricted. Who's screwed, the consumer. New controls are put on banks to limit risky investments and prevent mortgage default, and banks stop lending to everyone and impose strict limitations on helping consumer avoid default which results in more people losing their homes. Who's screwed, the consumer. The healthcare bill gets passed and the insurance industry immediately begins raising rates in anticipation of impending restrictions. Who's screwed, the consumer. While I would love to see protection for the US jobs, when you implement controls you need to make sure that the end result is what you are actually seeking to do. Unfortunately, the government does not have a very good track record of success.
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Sheetal.Pandey
9/29/2010 6:15 PM EDT
In this competetive market its very diffcult to avoid outsourcing looking at the quality and cost benefits.
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