econscius

There Is No Tax Deduction For Off-Shoring Jobs

In Political Rhetoric, President Obama, Tax Breaks on October 13, 2012 at 10:24 pm

During the first presidential debate against Mitt Romney, President Obama repeated a charge I see in the netherworld of liberal blogs and progressive’s Facebook posts.   As the head of the Business Round Table, John Engler, wrote in an op-ed:

What the candidates didn’t agree on was whether there is a deduction in the U.S. tax code that encourages companies to move plants overseas. Mr. Obama contended that such a deduction exists. Mr. Romney said, “I’ve been in business for 25 years and I don’t know what you’re talking about.”

According to the nonpartisan congressional Joint Committee on Taxation, there are no specific tax credits or deductions for moving plants and jobs overseas. …the tax code provides a deduction for all business expenses, including plant-closing costs, severance pay and worker retraining. [1]

I’ve never seen any “offshoring” deduction and am confident the Joint Committee on Taxation is correct that no offshoring jobs tax credit exists.

As President, Mr. Obama should know the law.  If he thought there’s a tax credit for exporting jobs, why didn’t he undo it during the past four years, especially the two when his party held complete control of Congress?  The answer is no such tax credit exists, Obama continued the spread of a false internet rumor.

Image of a globe centred on India, with India highlighted.

 [1] http://www.4-traders.com/news/BR-Business-Roundtable-The-Wall-Street-Journal-Op-ed-Engler-Corporate-Taxes-the-Myths-and-Fa–15327082/

Pictures from Wikipedia Commons.

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