Stop giving tax breaks on outsourcing: Obama
President Barack Obama on Friday made it clear that he will not relent on stopping tax breaks to American companies that ship jobs abroad and said incentives will be given to those firms which create jobs in the country.
Washington: President Barack Obama on Friday made it clear that he will not relent on stopping tax breaks to American companies that ship jobs abroad and said incentives will be given to those firms which create jobs in the country.
"Let`s stop giving tax breaks to companies that are shipping jobs overseas. Let`s stop incentivizing that and let`s give tax breaks to companies that are investing right here in the United States of America," Obama said in response to a question at his White House news conference today.
His remarks came close on the heels of the Ohio state Governor passing an executive order to ban outsourcing, a development that has raised concerns in India which is often described as the world`s back office.
Obama said instead of tax breaks that encourage corporations to create jobs overseas, he was for tax breaks for companies that create jobs in the country.
"Instead of tax breaks that encourage corporations to create jobs overseas, we believe in tax breaks for companies that create jobs right here in the United States of America. And so we`ve begun to do that," Obama said.
We believe in investments that will make America more competitive in the global economy -- investments in education and clean energy, in research and technology -- and we`re making those investments," he said.
The Indian IT sector, which gets 60 per cent of itsexport revenue from the US, has come out strongly against US moves to ban outsourcing.
New Delhi`s concerns on outsourcing and the steep hike in H-1B and L1 visa fees is expected to be raised during Obama`s maiden visit to India in November.
This is the second time in a week that Obama has spoken about outsourcing.
Obama admitted that economic progress in the US, facing a two-year-long recession, has been "painfully slow" and "we are not there yet".
"For all the progress we`ve made, we`re not there yet. And that means people are frustrated and why people are angry," Obama said.
Obama, under fire over the issue of job loses, said his proposal are meant to accelerate job growth in short term and revive small businesses.
"Because even though the economy is growing again, and we`ve added more than 750,000 private-sector jobs this year, the hole the recession left was huge, and progress has been painfully slow," he said
He said millions of Americans are still looking for work. "Millions of families are struggling to pay their bills or the mortgage,? Obama said.
He said these proposals are meant to both accelerate job growth in the short term and strengthen the economy in the long run.
These proposals include a more generous permanent extension of the tax credit that goes to companies for all the research and innovation that they do here in America, he underlined.
"I`ve proposed that all American businesses should be allowed to write off all the investments they do in 2011. This will help small businesses upgrade their plants and equipment, and will encourage large corporations to get off the sidelines and start putting their profits to work in our economy," Obama said.