Obama to end tax benefits to firms that ship jobs overseas

Sridhar Krishnaswami
Washington, Aug 31 (PTI) Democratic Party's U.S. presidential candidate Barack Obama has underlined his commitment to halt outsourcing of jobs overseas by ending tax breaks to companies that ship works to other countries, a policy that could adversely affect India.

In one of his first major campaign events in the aftermath of the Democratic Convention in Denver, Colorado, last week, Senator Obama stressed that he and his running mate Senator Joseph Biden is going to put an end to tax breaks to companies that ship jobs overseas.

Making a strong anti-outsourcing pitch, Senator Obama said "Joe Biden and I are going to change this tax code".

"We're going to take away tax breaks to companies that
ship jobs overseas. We are giving (will give) them to
companies that invest right here," Obama said in Dublin, Ohio.

Playing to the gallery on the hot button issue of
outsourcing, Obama kept up with the rhetoric on the subject
that has been a staple during his campaign for the party's
ticket.

"You are working harder and harder just to get by.
Tens of thousands, hundreds of thousands of manufacturing jobs
have left. People have lost not just their job, but their
healthcare, their pensions," Senator Obama pointed out.

The Democratic Party's leaders took broad swipe at the
soon to be official Republican nominee Senator John McCain for
being nothing but a shadow of what has transpired over the
Bush era at the White House.

Flaying the Republican-led administration, he said,
"John McCain and George Bush share the basic idea...that says
you're on your own".

"They call it the ownership society, but it really
means you're on your own. Your job gets shipped overseas,
tough luck, you're on your own," Senator Obama noted.

Senator Obama said the American people are worried
because they recognize that over the last eight years, "this
country has gone tragically off course".

That the Illinois Senator picked up on manufacturing
jobs and outsourcing in Ohio is not too surprising because the
Buckeye State is hurting economically, especially in
manufacturing and is seen as a critical state in the electoral
college map that a candidate has to win if an entry into the
Oval Office is to be assured.

Obama said it was time for fundamental change in
America and "that's why Joe Biden and I intend to win this
election so that we can have a government that is working for
you".

"We believe in individual initiatives. We believe in
self reliance. We believe people want to make it on their own.
But we also believe that we should have a government that
cares enough about ordinary people," the White House hopeful
said.

The rhetoric over outsourcing, which was raised by
Senator Obama at the Denver Democratic National Convention
last week, is bound to spark an outcry in India.

Reacting to the offensive from Obama, NASSCOM
President Som Mittal had earlier said Indian software exports
are unlikely to be affected by this as offshoring is a key
economic decision for U.S. companies. Mittal feels American
companies will themselves favour outsourcing.


The India Inc had on previous occasions stressed that
the Indian industry is in fact creating new work opportunities
for Americans. PTI