Commentary

Who put it there?

John F. Kerry loves to damn that infamous outsourcing “loophole.” So who put it there in the first place? The original JFK: [Mark Sellner, a corporate tax attorney with Larson, Allen, Weishair & Co., LLP, in Minneapolis, Minnesota, US.] said the current corporate tax structure, set up in the 1960s under President John F Kennedy’s administration, was designed to help manufacturers compete globally. And closing the loophole apparently won’t stop outsourcing, anyhow: In a world obviously even more globalised than 40 years ago, said Sellner, American companies coming to India have not done so for tax savings, but for the overall cost savings of doing business in an extremely competitive global market. And yet the Kerry camp can’t leave it alone. It just released a new report, rehashing the usual points, and slamming outsourcing: America confronts a new competitive challenge. The very sectors that drove the American boom of the 1990s are now being threatened by offshore outsourcing,” the Kerry report states. “Today, America’s innovation workers–software programmers and other professionals–are seeing their jobs outsourced to lower-wage countries around the world.” Outsourcing is part of trade and trade is a very powerful force for innovation. And so, Kerry would support innovation by stifling it? Hmmm.