Democratic presidential candidates have made the loss of U.S. jobs to international competition the centerpiece of their campaigns, but even some of the candidates' economic advisers acknowledge that remedies offered -- such as closing tax loopholes on overseas income and offering tax breaks for domestic hiring -- would probably do little to stop the bleeding.Hypocrital Democrats.
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The movement of jobs to low-wage countries such as China, India and Mexico has been driven by powerful forces of economic globalization that may be beyond a politician's control, economists say. The two leading Democratic candidates have fallen back largely on one economic factor that Washington does control: the tax code.
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But virtually no one would say that taxes are a primary -- or even a significant -- factor in the movement of as many as 300,000 white-collar jobs and many more manufacturing jobs abroad in the past several years. No matter how sweet the tax incentive is to expand in India, for instance, it could not be more enticing than lowering a software developer's pay from $60 to $6 an hour, a figure cited recently by the consulting firm McKinsey & Co.
Thursday, February 19
Democrats Can't Get Firm Grip on Jobs Issue By Jonathan Weisman:
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