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Monday, May 02, 2005

“Dell will increase its staff strength in India to 10,000 by January from nearly 8,000 at present, he said.

Less than two years ago, Round Rock, Texas-based Dell moved support for some customer calls back to the United States from Bangalore, citing ‘customer complaints.’” MSNBC.COM

I still hear Dana Carvey on SNL acting as Ross Perot screaming, "All I hear is a giant sucking sound of jobs going to Mexico." As crazy as Perot was he was certainly correct about NAFTA.

Doesn't this make anyone mad? It gets me hot and bothered. Since I have been replaced a couple of times by foreign workers twice by Indians even experiencing the pleasure of training my Indian counterpart, I think this sucks. If they are going to send US jobs off shore we should remove tax shelters that they enjoy being a US “based” corporation. I don't think its fair to have a double bonus of extremely cheap labor with poor benefits and tax shelters and priviledges associated with being a US corp. While I understand the business savings especially with rampant health care costs and litigation galore, I still think its wrong.

We lose out on several fronts. First we lose jobs, wages, and taxes associated with these jobs. If the average worker earns $30k a year I estimate we lose at least $15 million in taxes not to mention the other $45 million in money the foreigners spend in their own country instead of the USA.

Another idea about corporate taxes is instead of allowing companies to write off capital expenditures and upgrades, we could have tax shelters for businesses who spend more on above average compensation or other employee perks like tuition and such. Just my idea I could be off base. For example if the medium average income in Utah for a Hotel maid is $10 and the company pays $15 an hour then the company would be eligible to write off a certain amout of the money spent above the average. This of course is just a simplized version.

Ideally I believe in a flat tax to be the fairest method of taxation but corporations will never allow our government to change to a flat tax.

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