I'm a little curious about something related to tax cuts. I'm speaking directly to Roger, since he has been the most vocal about the benefits of tax cuts, but certainly anyone is more than welcome to weigh in here. Roger, if I have understood your previous posts correctly, you support tax cuts because these rich people - who own businesses both big and small - will take the money from the cuts and put it back into the economy, creating jobs/new companies/etc.
I saw part of Obama on the trail today, and I believe he stated that big businesses are currently receiving tax credits for outsourcing. Have I misunderstood, or do you think Obama's mistaken? I know that tax credits and tax rate cuts are two different things, but both serve the same bottom line: to lower the amount of tax an individual/business pays in a given year. There is undeniably lots of outsourcing going on - presumably just an issue with big businesses. And we know that all this outsourcing is occurring because labor costs are considerably cheaper in other countries.
Big business is looking to their bottom line by outsourcing, because it cuts their costs. If they are actually being rewarded by the US government for this, that saves them even more money, but presumably this money is NOT being returned to the economy, since in the US jobs are being lost - not created - by outsourcing.
I'm not looking for a complicated explanation; mostly just a simple yes or no - and why - if you feel that I have misunderstood this issue.
Kathy
