Wednesday, October 01, 2008
Finally, a fact check on free trade!
How many times have you heard that the Republicans gave US companies "tax breaks" to send jobs overseas?
"It's misleading to imply that McCain's support for the tax code in question is to blame for companies sending jobs overseas, as we've said before.
The Obama-Biden campaign refers to a dynamic of U.S. tax code that allows companies to defer paying corporate income taxes on money they earn overseas and leave overseas.
But the relationship to lost jobs is tenuous."
There is no law that gives tax breaks to US companies for moving their operations overseas.
Also, most Ohio and PA companies did not move to Mexico or elsewhere.
They moved to Texas:
"Ohio, Indiana and Michigan are losing auto jobs, but many of these "runaway plants" are not fleeing to China, Mexico or India.
They've moved to more business-friendly U.S. states, including Texas.
GM recently announced plans for a new plant to build hybrid cars.
Guess where? Near Dallas.
In 2006 the Lone Star State exported $5.5 billion of cars and trucks to Mexico and $2.4 billion worth to Canada." (Texas v. Ohio)
Obama's lies about free trade are hurting the people of Ohio and PA in two ways:
1) It creates false expectations, such as the silly expectation that Obama can bring the jobs back; and,
2) It doesn't force local and state politicians to address the real cause of job losses, i.e. high taxes and out of control unions!
Obama and the Dems pretend to be the party of the "little people". In fact, they are the single biggest reason that so many "little people" have lost their jobs.