Tax code encourages sending jobs overseas
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Kerry Says Job One is American Jobs During Democratic Radio Address
4/3/2004 11:07:00 AM
To: National Desk, Political Reporter
Contact: Stephanie Cutter, 202-712-3000 or David Wade, 202-712-3000, both of John Kerry for President
WASHINGTON, April 3 /U.S. Newswire/ -- Senator John Kerry Saturday outlined his plan to keep and create jobs in America during the Democratic Radio Address to the nation. With the economy continuing to struggle under record job loss and an indifferent Bush administration, Kerry said it is time for a President with an economic policy that puts jobs first.
For three years, President Bush's plan to create jobs has been to cut taxes for the wealthy. While people earning over $200,000 have received a tax cut, 2.6 million jobs in the private sector have been lost and 1,121,900 unemployed workers have exhausted their unemployment benefits. While the President and his economic advisors have insisted that outsourcing "makes sense," a record number of U.S. workers have lost their jobs to countries overseas.
"Hard work has always been a basic American value. Good jobs mean that people can pay their bills, save for their family's future, and live with dignity and pride," Kerry said. "But, today, in too many places, American jobs are being sent overseas. Just a couple of days ago, the company that makes the red Radio Flyer wagons our children have played with for generations decided to start building them in China - laying off people who've worked for years at the plant in Chicago and letting another piece of America vanish."
As President, Kerry said he will put American jobs first by creating 10 million jobs in his first four years.
"From cars to computer software to call centers, millions of Americans have seen their jobs shipped overseas," Kerry said. "We can't retreat from the global economy or bring back every lost industry or protect every job. Some of them will move abroad. But we shouldn't have a President who encourages it -- or a tax code that rewards it."
To keep jobs here in America, Kerry will eliminate all of the tax breaks that encourage companies to move jobs overseas and use the savings to encourage companies to create jobs in America. Using a New Jobs Tax Credit paid for by a one-year tax holiday to encourage companies to reinvest their foreign earnings in America, Kerry will help jumpstart job creation.
"10 million new jobs in America: We can achieve that goal if we have a plan to do it, if we invest in our future, and if we have a President who knows that job one is American jobs - and who goes to work every day determined to win that fight," Kerry said.
The Kerry campaign Friday began running a new 30-second television spot highlighting the Kerry plan to keep and create jobs in America.
EMBARGOED UNTIL SATURDAY, APRIL 3, 2004, 11:06 AM (EST)
Remarks of Senator John Kerry
Democratic Radio Address to the Nation
Saturday, April 3, 2004
Good morning, this is John Kerry. Thanks for letting me spend a few minutes talking with you about one of the greatest challenges America faces: how to create and keep good jobs here at home.
Hard work has always been a basic American value. Good jobs mean that people can pay their bills, save for their family's future, and live with dignity and pride.
But, today, in too many places, American jobs are being sent overseas. Just a couple of days ago, the company that makes the red Radio Flyer wagons our children have played with for generations decided to start building them in China - laying off people who've worked for years at the plant in Chicago and letting another piece of America vanish.
For three years, President Bush's only answer on jobs has been tax cuts for Americans who are already earning over $200,000 a year. We now hear the Administration claiming economic success. But the definition of economic success should not be losing 2.6 million jobs in the private sector. There is not a single month of this administration that has seen the creation of a single manufacturing job.
From cars to computer software to call centers, millions of Americans have seen their jobs shipped overseas. We can't retreat from the global economy or bring back every lost industry or protect every job. Some of them will move abroad. But we shouldn't have a President who encourages it - or a tax code that rewards it.
In December, President Bush's Commerce Department hosted workshops to train American companies in outsourcing and show them how to export jobs to China. Earlier this year, the President's chief economic advisor said that outsourcing jobs "is a good thing." And just this week, Treasury Secretary John Snow told us that sending jobs offshore makes our economy "stronger."
I believe we need a new direction. That's why I have a detailed economic plan to put jobs first and create 10 million new jobs in the next four years.
We'll start by changing the laws that actually give companies tax breaks to send jobs overseas and their corporate headquarters to Bermuda. And we'll plow back every dollar we save into new incentives to help companies create and keep good jobs here in America.
Today, our tax code puts an American company that manufactures products in Michigan at a competitive disadvantage with an American company manufacturing the exact same products in Malaysia. Our tax code lets the one in Malaysia defer paying taxes - perhaps forever. In fact, we actually end up paying companies twelve billion dollars a year to ship their profits and our jobs overseas. In effect, American workers are actually subsidizing the loss of their own jobs. That's wrong; we're going to end it - and we're going to help businesses create new jobs here at home and cut the corporate tax rate by 5% to make our own companies more competitive in the world. I've outlined a plan to use that money at home to give corporations and small businesses the help they need to cut their taxes and create new jobs.
Under my plan, 98 percent of Americans and 99 percent of companies will get a tax cut. Instead of tax giveaways to the wealthiest Americans and tax benefits for exporting our jobs, we're going to have tax cuts that help middle class families make ends meet and help businesses create new jobs.
10 million new jobs in America: We can achieve that goal if we have a plan to do it, if we invest in our future, and if we have a President who knows that job one is American jobs - and who goes to work every day determined to win that fight.
This is John Kerry. Have a good weekend and thanks for listening.
GEORGE W. BUSH: OUTSOURCING IS GOOD FOR AMERICA
JOHN KERRY: A DETAILED PLAN TO KEEP JOBS HERE AT HOME
George Bush and his Administration clearly have no plan and no intention to stem the flow of jobs overseas. As millions of Americans have seen their jobs outsourced offshore, the Bush Administration has embraced this trend as good for America. George Bush is out of touch with the American people. John Kerry knows that a real economic recovery occurs when Americans are put back to work. That's why he has a plan to create 10 million new jobs here at home by encouraging small businesses to create jobs and eliminating incentives for corporations to take jobs overseas.
GEORGE BUSH IS OUT OF TOUCH:
Bush's 2004 Economic Report of the President: Outsourcing Makes Sense. "The report (signed by President Bush)...said that 'when a good or service is produced more cheaply abroad, it makes more sense to import it than make or provide it domestically.'" (Washington Post, 2/13/04)
Treasury Secretary Snow: You can Outsource a lot of Activities. "You can outsource a lot of activities and get them done just as well at a lower cost." (Associated Press, 3/30/04)
President's Chief Economic Advisor: Outsourcing is Good. "The movement of U.S. factory jobs and white-collar work to other countries is part of a positive transformation that will enrich the U.S. economy over time, even if it causes short-term pain and dislocation, the Bush administration said yesterday. ... 'Outsourcing is just a new way of doing international trade,' said N. Gregory Mankiw, chairman of Bush's Council of Economic Advisors, which prepared the report. 'More things are tradable than were tradable in the past. And that's a good thing.'" (LA Times, 2/10/04, emphasis added)
Commerce Secretary Evans: Outsourcing Follows Philosophy of Roosevelt. "DOBBS: Commerce Secretary Don Evans tonight will defend vigorously outsourcing. In a transcript of prepared remarks the secretary will deliver to the World Affairs Council in Washington, Secretary Evans cites the internationalism of Franklin and Theodore Roosevelt in charging that -- quote - 'The emerging economic isolationism and its undercurrent of unspoken nativism must be firmly and forcefully rejected.'" (CNN, 3/23/04)
Secretary Colin Powell Called Outsourcing, "A Natural Effect of the Global Economic System." While traveling on a diplomatic mission to India, Secretary of State Colin Powell offered support to the trend of outsourcing jobs from the United States to India. Powell said, "Outsourcing is a natural effect of the global economic system...You're not going to eliminate outsourcing." (Chicago Tribune, 3/17/04)
14 Million Jobs at Risk for Outsourcing. "... economists at the University of California, Berkeley ... concluded that a staggering 14 million positions could be at risk. Many of those in the bull's-eye are white-collar office workers. Some involve lesser-skilled fields like telemarketing, but others are highly educated. Some of them-radiologists, accountants, engineers-have invested in years of schooling, so they feel especially burned." (Newsweek, 3/1/04; Fisher Center for Real Estate and Urban Economics, University of California, Berkeley, 11/03)
Over 2.8 Million Lost Manufacturing Jobs: During George Bush's Administration over 2.8 million Americans have lost their jobs. (Bureau of Labor Statistics)
ANOTHER AMERICAN ICON HEADS OVERSEAS:
Radio Flyer Sends Half Its Workforce to China. Radio Flyer, makers of metal red wagons used by America's children, will send its jobs from Chicago to China. The Chicago Tribune reported, "Radio Flyer Inc. will stop making its famous red metal wagons in Chicago by the fall, halting its final manufacturing operation and releasing nearly half of its 90 employees...Radio Flyer's decision follows a well-worn path to China for the toy industry. Today, China makes 80 percent of the world's toys, according to industry estimates." (Chicago Tribune, 3/30/04)
JOHN KERRY WILL CREATE 10 MILLION NEW JOBS AND STEM THE FLOW OF JOBS OVERSEAS:
-- International tax reform to end incentives to ship jobs overseas - and cut corporate rates by 5 percent. John Kerry is proposing the most sweeping tax reform in over four decades to stop giving tax subsidies to companies that ship jobs overseas. The money saved will be used to cut the corporate income tax rate by 5 percent.
-- Tax credits for businesses that create jobs in manufacturing, other businesses affected by outsourcing, and small business. John Kerry has proposed a tax credit to pay the employer share of payroll taxes for any net new jobs created by manufacturers, other businesses affected by outsourcing and small businesses. This tax credit will jump-start job growth and help restore confidence in the economy.
-- Health reform to end runaway premium growth and help make employers more competitive. Under George Bush healthcare premiums have risen 40 percent - making it harder for employers to hire new people. John Kerry has a plan to make healthcare more affordable for America's families - and cut the costs for businesses. His plan includes tax credits to help small business pay for health insurance and a plan to reduce premium growth.
-- Energy security - and 500,000 new jobs. John Kerry has a strategy to make America energy independent with investments in renewables and the energy technologies of the future. Kerry's plan will lead to 500,000 new jobs - not counting its benefits in keep energy costs down and making American businesses more competitive.
-- Middle-class tax cuts for education. John Kerry has proposed a tax cut to help make four years of college universally accessible for all Americans. By investing in education that will help train the workforce of the future - and create good, high-paying jobs.
-- Restore confidence by restoring fiscal discipline. Under George Bush, America has gone from record surpluses to record deficits - with deficits continuing as far as the eye can see. Kerry will restore fiscal discipline, pay for all his proposals, and cut the deficit in half in his first term as President. This will help give America's businesses the confidence they need to start hiring again.
/© 2004 U.S. Newswire 202-347-2770/