Obama Plays Villian in the Outsourcing Saga

The americans have voted for change and they have gone for Obama and loaded him with a huge task to revive the US economy which is in bad shape.Obama was voicing concerns over the tax breaks enjoyed by us companies which offshored jobs to their offshoring centres in India.Everyone thought that his statement were in for the polls.Now he has said again in the State of the Union address that he is going to have a relook in the US tax code.

Pranab and PC expressed concerns over US's new protectionalism.Democrats have been saying for years about this.Microsoft, GE, HP, Motorolla, Pepsi, Honeywell ,IBM etc are among the thousand companies that is offshoring different jobs to their development centres in India and get it done by indian engineers or youths and take the money back to US and get it taxed at just 5.25 percent as against the usual 35 percent of foreign earnings.This is due to a 2004 tax holiday provision for foriegn earnings.

Obama is right about what he is saying.As the ruler, he is obliged to protect the interest of the common people and to make sure that even the weaker sections are living well.For that what he can do is to stand as a facilitator in creating jobs.

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