Here is my favorite quote from the debates last night. I was listening to B.O. and couldn’t make heads nor tails of what he was trying to say. Then, Romney speaks up and I couldn’t believe it! I thought it was just me not understanding the “brilliance” of B.O.!
“I’ve been in business for 25 years. I have no idea what you’re talking about. Maybe I need to get a new accountant, but the idea you get a break for shipping jobs overseas, is simply not the case.” ~Mitt Romney in response to B.O.'s blathering comments.
Yeah, unfortunately Romney is lying. Companies do get tax credits for moving jobs overseas. Specifically, the Federal government provides a tax break for moving jobs to a new location (to offset the cost to business). The Dems this year tried to amend that to say that you only got the tax break for setting up in a new position inside the United States. The Republicans voted it down. Hence they are in favor of tax breaks for moving jobs overseas. We talked about it on this thread: http://www.republicanoperative.com/forums/f47/senate-kills-bring-jobs-home-act-36871/
You apparently didn’t hear the latest from Algore…algore says the ALTITUDE affected his fearless leader. Yeah, right! I believe that as much as I believe that Algore invented the internet and that global warming is a fact…what a complete moron! They REALLY DO think we’re stupid, don’t they? :awkward:
When discussing taxes, you must use the right terminology. A tax credit is a dollar per dollar reduction in taxes. So $1 of Earned Income Tax Credit(EITC) is worth $1.
A tax deduction is subtracted from income prior to taxing. That means that it is only worth the rate that it would have been taxed at. So $1 in the 20% tax bracket is worth 20 cents.
All costs for doing business are tax deductible. This includes moving a business whether overseas or domestic, hiring employees, buying materials, advertising etc. In other words, the taxes are only taken out of the net profits, not the gross business income.
The answer is no, there is no specific provision in the tax code that gives a tax credit for moving jobs overseas. There is a general provision that allows the deduction of business expenses that is not specific to relocating businesses overseas. It is demagoguery to claim there is a specific credit or deduction for moving jobs overseas.
Changing the tax code to encourage or discourage certain activities is why we have a tax code that is 44,000 pages and growing by the hour.