Tax breaks for moving jobs overseas?

Discussion in 'Politics, Religion, Social Issues' started by senseless, Oct 4, 2012.

  1. senseless macrumors 68000

    senseless

    Joined:
    Apr 23, 2008
    Location:
    Pennsylvania, USA
    #1
    Romney denied this in last night's debate and I haven't found the answer to this yet. Are there special tax breaks for moving jobs overseas or is Obama referring to normal tax breaks afforded all companies?
     
  2. insimbi macrumors 6502

    insimbi

    Joined:
    Mar 27, 2008
    #2
    I've been in business 25 years....I have no idea what you are talking about. :)
     
  3. mcrain macrumors 68000

    mcrain

    Joined:
    Feb 8, 2002
    Location:
    Illinois
    #3
    Romney not familiar with business expense deduction? Business expert my *ss.

    The President has repeatedly called for eliminating the deduction that may be claimed for US businesses that claim expenses related to offshoring as a "business expense." What was proposed was nothing more than a limiting of the currently open, broad definition of business expense.

    Is there a reason the Republicans, and Romney in particular, are opposed to this?
     
  4. GoCubsGo macrumors Nehalem

    GoCubsGo

    Joined:
    Feb 19, 2005
    #4
    I believe there is something to be had for a company by way of a break if they move jobs off shore. It is un-American but that is the way companies seem to want to go. It's ******** and Romney is full of **** for pretending he doesn't know.
     
  5. senseless, Oct 4, 2012
    Last edited: Oct 4, 2012

    senseless thread starter macrumors 68000

    senseless

    Joined:
    Apr 23, 2008
    Location:
    Pennsylvania, USA
    #5
    Thanks for the reference, McCrain.

    There is no special tax incentive for US companies to move jobs overseas. But, there is consideration given for EARNINGS made overseas. It has nothing to do with jobs. I didn't know that without the tax deferral, US companies would be required to pay taxes in a foreign country and the US at the same time. This could be uncompetitive for say, Ford, who sells in Europe and Asia.

    I think this is about revoking normal expenses associated with building a factory or setting up shop overseas, if US jobs are sacrificed.
     
  6. Don't panic macrumors 603

    Don't panic

    Joined:
    Jan 30, 2004
    Location:
    having a drink at Milliways
    #6
    but didn't obama simply state that you CAN get a deduction for moving the jobs oversea? i think that's true no matter how you slice it: you can. and I am sure romney knows.

    the problem was that obama should have explained it in the debate and exposed romney, same with the 700 billion 'cut' to medicare.

    so many lost chances, hopefully he learns his lesson and does better next time, but romney exposed himself so much it could have been game over
     
  7. thewitt macrumors 68020

    thewitt

    Joined:
    Sep 13, 2011
    #7
    This is just more Democrat fear mongering.

    There are no tax breaks for moving jobs overseas.
     
  8. Rampant.A.I. macrumors 6502a

    Joined:
    Sep 25, 2009
    #8
    According to the NY times and other sources (like the IRS) companies get to deduct expenses for moving their operations and manufacture overseas.

    Laypersons call these "tax breaks."

    http://elections.nytimes.com/2012/debates/presidential/2012-10-03#fact-checks?smid=tw-nytimes

    Republicans apparently support moving jobs overseas, and don't want tax breaks for keeping labor in the US, or even for moving jobs back to stateside:

    http://thomas.loc.gov/cgi-bin/bdquery/z?d112:SN3364:
     
  9. thewitt macrumors 68020

    thewitt

    Joined:
    Sep 13, 2011
    #9
    Show me the tax law that states, "Move your jobs over seas and you will get a tax break."

    Anything less is a specious argument.

    Businesses deduct expenses. It's a very large bucket and includes things that are clearly going to be objectionable to some.

    I could write that businesses get tax breaks for killing dogs and I would technically be correct. That does not mean there is a tax break for dog killers.

    Twisting things around to make a political point is classic in politics, but its a disingenuous argument at best.

    Want to reform the tax laws? Great.

    Tax me once for any money earned, flat rate, no deductions. Treat all income the same for individuals, corporation, non profits, everyone. You get my vote.

    Continue to try to drive behavior with tax laws and keep destroying the economy.
     
  10. Zombie Acorn macrumors 65816

    Zombie Acorn

    Joined:
    Feb 2, 2009
    Location:
    Toronto, Ontario
    #10
    America can't compete internationally with cheap labor. Stopping off-shoring isn't going to help anyone.
     
  11. jnpy!$4g3cwk macrumors 65816

    jnpy!$4g3cwk

    Joined:
    Feb 11, 2010
    #11
    (emphasis added)

    It is all in the word "special" there. Some politicians have been trying to make the business expenses of moving jobs overseas not-tax-breakable for some time, other politicians reject that.
     
  12. applesith macrumors 68030

    applesith

    Joined:
    Jun 11, 2007
    Location:
    Manhattan
    #12
    Obama presented it as a specific deductions for sending jobs overseas. That was misleading. Doing anything with jobs that incur costs can be deducted as expenses.
     
  13. mcrain macrumors 68000

    mcrain

    Joined:
    Feb 8, 2002
    Location:
    Illinois
    #13
    In other words, you agree that there are tax breaks for shipping jobs overseas, but unless someone shows you the law that says you get a tax break for shipping jobs overseas, you think the argument is specious. Seriously, that has to be the weakest argument I've seen in a while, and I see weak arguments every day. Thank you for the chuckles.

    All income should be taxed the same every time it is earned, however, you are arguing for the GOP which wants to treat different income differently, and in addition, tax some income at much lower rates or not at all. Perhaps you might want to give some serious thought to who you are backing as you sound more like me than a Republican.

    ----------

    No, Obama presented a bill to specifically exempt offshoring expenses from teh deduction. Read what was proposed, not the speaches. Republicans opposed it.
     
  14. imahawki macrumors 6502a

    Joined:
    Apr 26, 2011
    #14
    This forum is a riot. Obama is badly twisting reality to claim there is a tax incentive for moving jobs overseas. There is no tax incentive that specifically applies to offshoring jobs and he's deliberately misleading the public over a hot button issue. Might as well say there is a tax break for buying foreign made cars for business use. There is, under Obama's definition. There's also a tax bread for buying American cars for your business but that doesn't fire people up.
     
  15. applesith macrumors 68030

    applesith

    Joined:
    Jun 11, 2007
    Location:
    Manhattan
    #15
    I'd have to look at that bill again. I recall it having some broadness about excluding most costs related to anything outside the US. Specifically for costs incurred for planning and supporting offices or stores in foreign markets.
     
  16. citizenzen macrumors 65816

    Joined:
    Mar 22, 2010
    #16
    It seems to me Obama could just reword it and make just as strong a statement ...

    You can move your business overseas and get a tax write-off while taking jobs away from hard-working Americans.
     
  17. imahawki macrumors 6502a

    Joined:
    Apr 26, 2011
    #17
    No, he should say, there are tax write offs for business expenses. But everyone knows that and doesn't care. All the TRUTH is is that if you spend $1M there is going to be some tax write off under current tax law. It doesn't matter if you spent it on servers or buying office space and desks in India. Obama is making it SOUND like there is a specific tax benefit for moving the jobs. There is NOT.

    If Obama explained the FACTS it would be a boring, normal tax code situation that no one would be pissed about. That doesn't help him foment class warfare.
     
  18. MadeTheSwitch macrumors 6502a

    MadeTheSwitch

    Joined:
    Apr 20, 2009
    #18
    But you SHOULDN'T be able to take a write off by buying office space and desk in another country. That is the whole point.
     
  19. zioxide macrumors 603

    zioxide

    Joined:
    Dec 11, 2006
    #19
    Exactly.

    The Republicans here are too busy trying to have a pissing match over semantics, without actually discussing or trying to fix the problem.
     
  20. Rampant.A.I., Oct 5, 2012
    Last edited: Oct 5, 2012

    Rampant.A.I. macrumors 6502a

    Joined:
    Sep 25, 2009
    #20
    You're moving the goal posts. You claimed tax breaks for moving businesses overseas do not exist, then when you were shown they do exist, given a direct link to the tax codes that make it possible, you scoff and demand to be shown the sections of the tax codes that say "these are the incentives for moving your labor overseas."

    Our laws don't have to say "killing someone without reason in a park on a Wednesday while wearing sweatpants with a hammer is murder" for unlawful killing to be considered murder.

    Source? Are you aware of a rise in dog-killing businesses the same way the rest of us are aware of American companies outsourcing their labor?

    So you're not concerned about American jobs and industry being outsourced overseas, and in fact believe reforming tax law that allows deductions for moving business overseas would be destroying the economy, because it's a regulation on corporate behavior, and Ayn Rand would not approve?
     
  21. djjclark macrumors regular

    Joined:
    Feb 17, 2008
    #21
    So Apple shouldn't be able to write off the expense of building a new store in Paris or some other foreign city?
     
  22. citizenzen macrumors 65816

    Joined:
    Mar 22, 2010
    #22
    Surely there is a way to differentiate between opening a retail outlet vs. off-shoring the manufacturing of a product.
     
  23. zioxide macrumors 603

    zioxide

    Joined:
    Dec 11, 2006
    #23
    Why should they get a tax break in the United States for opening a store in Paris? That's crazy.
     
  24. Zombie Acorn macrumors 65816

    Zombie Acorn

    Joined:
    Feb 2, 2009
    Location:
    Toronto, Ontario
    #24
    You don't see any benefit of having international companies? It costs businesses money to start up overseas.
     
  25. Eraserhead macrumors G4

    Eraserhead

    Joined:
    Nov 3, 2005
    Location:
    UK
    #25
    If its worth it they'd do it anyway.
     

Share This Page