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Companies need incentives to not outsource

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Posted: Wednesday, July 18, 2012 12:00 am | Updated: 6:40 am, Wed Jul 18, 2012.

I was amazed at your recent article about how members of Congress were complaining because members of our Olympic team were going to wear dress uniforms for the opening parade that were made in China.

I work in a funeral home and almost all of our urns are made in China, and Costco sells caskets that are made in China. If you buy almost anything in any store anymore, it is made in some foreign country.

About 10 years ago, Congress passed legislation that was signed into law by President Bush that actually gave American companies tax incentives to move their operations out of the USA. Many members of Congress invested in companies that outsourced jobs to other countries. That is why between 2007 and 2011 the USA lost over 8 million jobs, while our unemployment rate skyrocketed. That is why the economies in China, India, Pakistan and many other countries have improved over the last few years, while the economy in the USA seems to have been destroyed.

We now have the worst economy we have had in 80 years — since the Great Depression of the 1930s! That is another reason for all the foreclosed homes and all the empty buildings you see that used to house thriving businesses.

If Congress is so worried about our Olympic team having to wear uniforms that are made in China, they should do something to give companies tax incentives to move their jobs back to the United States, and take aggressive action to create jobs in this country that will give millions of unemployed Americans suitable, gainful employment once again. Until millions of Americans go back to work at higher-paying jobs, our economy is going to stay in the toilet, our deficits are going to continue to soar and we are going to become a third-world country.

It is time for the Democrats and Republicans to stop arguing over ideology and start working together to solve the problems we face in the United States of America!

Karl M. Welsbacher Jr.


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  • Darrell Baumbach posted at 3:47 pm on Fri, Jul 20, 2012.

    Darrell Baumbach Posts: 9405

    Ms Bobin stated...these corporations can take advantage of all of the loopholes and pay zero tax like GE.

    Good point Ms Bobin. Obama should be ashamed of supporting GE and favoring that particular company.

    Obama’s favorite CEO gets GE out from paying any US taxes ...
    posted at 10:55 am on March 25, 2011 by Ed Morrissey...

    He has designated G.E.’s chief executive, Jeffrey R. Immelt, as his liaison to the business community and as the chairman of the President’s Council on Jobs and Competitiveness...

    GE’s ability to generate $14.2 billion in profits, $5.1 billion in the US, and end up getting back $3.2 billion from tax payers is a disgrace. Clearly Obama and GE are in bed together and have conspired to work for each others mutual benefit. It is no accident that GE paid no yaxes...

  • Joe Baxter posted at 1:04 pm on Fri, Jul 20, 2012.

    Joe Baxter Posts: 1904

    Mitt Romney sounds like a smart individual. Show me a taxpayer that doesn't take advantage of all the LEGAL tax break and I will show you an idiot. Hey Bobbin, I know you send extra money to the Feds with every tax return you submit, but some people are smarter than that.

  • Joanne Bobin posted at 8:26 am on Thu, Jul 19, 2012.

    Joanne Bobin Posts: 4488

    If the US has one of the highest corporate tax rates, it certainly is fortunate that so many of these corporations can take advantage of all of the loopholes and pay zero tax like GE.

    Like Mitt Romney loves to crow (while simultaneously declaring he will NOT release his tax returns) "I don't pay ONE DOLLAR more in taxes than I legally have to."

  • Darrell Baumbach posted at 7:41 am on Thu, Jul 19, 2012.

    Darrell Baumbach Posts: 9405

    Maybe in 20 or so years...

    not a chance... 100 years at the earliest.

  • Darrell Baumbach posted at 6:03 am on Thu, Jul 19, 2012.

    Darrell Baumbach Posts: 9405

    It seems to me that the democratic party, who wants to increase taxes on business as high as it can, is providing all the tax incentives business gets to encourage them to outsource jobs overseas. Bill Gates outsourced to India with thousands of good jobs. Why? Because his international competitors do and he would suffer economically if he did not.

    Of the 34 developed countries that make up the Organization for Economic Cooperation and Development, America has the second-highest corporate tax rate.
    U.S.-based companies are taxed at 35 percent by the federal government. Add state taxes to that and the average corporate tax rate is 39.2 percent. Since California is higher than most states in it's corporate tax, jobs are leaving this state more than most.

  • Joanne Bobin posted at 2:07 pm on Wed, Jul 18, 2012.

    Joanne Bobin Posts: 4488

    Excellent letter, Mr. Welsbacher. It's time to stop the battles and obstructionism and get to work.

    Funniest news item about the Chinese made Olympic uniforms:

    The three stooges from Fox and Fools, Steve "Doofy," Gretchen "Gruesome," and "Brain" Kilmeade mocking the choice of "berets" as the team's headgear as being "too French," "un-American," and good heavens, they are even pronouncing "beret" in the "French" manner.

    Apparently, they weren't intelligent enough to know that berets have been standard military issue for US Special Forces (the Green Berets), paratroopers and others.

    Even their own audience took exception to their collective stupidity.

  • Walter Chang posted at 8:14 am on Wed, Jul 18, 2012.

    Walt Posts: 1171

    "It is time for the Democrats and Republicans to stop arguing over ideology and start working together to solve the problems we face in the United States of America!"

    Karl, this is the best statement made in here in weeks!

    It's too bad that it isn't going to happen anytime soon!

    Certain segments of our society will have to die off before any progress will be made.

    Maybe in 20 or so years...

    This task will be left to our children and grand children.

    Sad but true!!


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