"STOP OUTSOURCING... BUT BE COMPETITIVE" ... hehe.. u r kiddin' me

US president obama unveiled the tax code changes with an intention to make offshoring more expensive(as he says..!) by denying deductions on things like payrolls and other expenses in the offshore centers for US corporations.The changes are yet to be approved by the congress.

 "The U.S. currently has a tax code that says you should pay lower taxes if you create a job in Bangalore, India, than if you create one in Buffalo, New York," Obama said.

 It seems he (and his thinktank) never took the wage difference into consideration which is the main motivation for moving the work overseas.For example, on an average, a filing for patent in US costs around $30,000 where as with$10,000, as many as 6 patents can be filed exercising the outsourcing option, as per a report by KPMG.

The criticism boils down to this: It isn't the tax code that created the offshore outsourcing industry over the last decade; it's the low cost of highly skilled labor.

More over, there could be unforeseen consequences to the tax changes. A foreign country could, for instance, offer subsidies to U.S. firms to create jobs as a way of mitigating any tax impact.

Obama says, "I want to see our companies remain the most competitive in the world. But the way to make sure that happens is not to reward our companies for moving jobs off our shores or transferring profits to overseas tax havens."

Mr.O**ma.. its not just the jobless population that is suffering but the companies too... Sustainably, u cant help one entity at the price of the other.Both should complement each other.

You want your companies to sell products to consumers in India and China. But you want to limit the job creation to US, though it is expensive.How can you justify it??? either logically or otherwise...

How can you stop your companies from going global, from adopting the efficient and cost cutting options like outsourcing, yet ask them to be competitive with their foreign counterparts who do outsource and have the cost advantage???

isn't that an oxymoron???