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October 15, 2004
With net job losses and paltry wage growth over the last four years, Americans rightly want some response to the continued offshoring of many manufacturing and service jobs. The Bush administration has called the outsourcing of jobs "a good thing" and has done nothing to help struggling Americans through difficult times or help them make the transition to new work. While developments in the larger global economy are unavoidable, the Center for American Progress offers some sensible policies moving forward to help alleviate the negative side effects of offshoring.
- First, create a real support system for displaced American workers. A top short-term priority is to adopt a universal assistance system for displaced workers that would include healthcare, retraining, wage insurance and an updated unemployment insurance system. In addition, labor law should be updated to allow workers a better chance to join a union, which can improve communications between management and employees.
- Second, reform the tax code to discourage American companies from moving jobs overseas. The cumulative effect of current loopholes and tax havens reduces the average effective tax rate that U.S. companies pay in foreign countries to 21 percent, compared to the 31 percent effective rate they pay in the United States. American Progress recommends the government close loopholes in the tax code that provide incentives for companies to move jobs abroad rather than invest at home.
- Third, improve science, technology and innovation so America remains competitive in key industries. The Bush administration's latest five year budget would cut research and development budgets in 21 of 23 scientific agencies and its post 9/11 visa policies have had a negative affect on the flow of foreign scientists to the U.S. This endangers America's ability to create new industries and jobs. American Progress recommends that the research and experimentation tax credit be made permanent, that the U.S. increase its critical investments in scientific and technology research, and that immigration policies be updated to recognize the important role of immigrants in furthering U.S. innovation and competitiveness.
Click here to see the full report on offshoring by the Center for American Progress.
Daily Talking Points is a product of the American Progress Action Fund.
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Daily Talking Points is a product of the American Progress Action Fund. |
