Charlie Crystle Blog: US Reps Introduce Legislation on US Contracts; Would Ban Foreign Labor

March 03, 2004

US Reps Introduce Legislation on US Contracts; Would Ban Foreign Labor

My friend Bucky sent me this one:

NEW YORK (Reuters) - About 50 U.S. House members plan to introduce a bill Wednesday that would deny U.S. companies federal financing and loan guarantees if they shift U.S. jobs overseas.
The proposed Defending American Jobs Act was written by Rep. Bernard Sanders, Independent of Vermont, and will be co-sponsored by about 50 other representatives,

The Defending American Jobs Act would target corporate assistance offered by agencies like the U.S. Export-Import Bank, a 70-year-old unit that provides trade financing and other help to U.S. companies that conduct business abroad.

Sanders singled out Motorola Inc., for receiving $190 million in Ex-Im Bank assistance to build its China operation while firing 42,900 workers, and General Electric Co. for receiving $2.5 billion to finance China expansion while firing 260,000 workers.

It's amazing how much we subsidize companies like Lockheed, Boeing, and Motorola, who then take their jobs overseas. Motorola is one of the bigger offenders, rolling out a site where they profess to be a Chinese company (clearly catering to the Chinese government, but a sales pitch to the Chinese is damning evidence in the US).

I think this is pretty simple. If you're going to create new jobs and choose another country in which to do it, you are no longer eligible for US tax breask, incentives, government backed loans, government trade services, etc. If you create the new jobs here, we'll roll out the red carpet for you. You can choose to grow your company anywhere you'd like. And if the majority of your employees--including employees from subcontractors--are outside of the US, then the parts/services/goods you bring in shall be subject to a market tax--the price of admission.

The market tax would be an estimated average amount of local, state, and federal taxes that would have been paid on a per employee basis had the jobs been created here. That ensures that when a company gets the benefit of selling into our markets, they are paying their fair share for the upkeep.

Posted by Charlie Crystle at March 3, 2004 10:11 AM | TrackBack

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