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Politics : Don't Blame Me, I Voted For Kerry
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To: tonto who wrote (10326)3/28/2004 11:44:34 AM
From: Lizzie TudorRead Replies (1) of 81568
 
this Kerry economic plan double taxes the large multinationals that produce products offshore and sell them here. HP does this as an example.

Taxes, in and of themselves are just one advantage of offshoring. But the cost savings relized from offshoring according to MacKenzie and others are starting to be scaled back, to 10-30% vs. the original 70% that everyone was touting. So, if a multinational is contemplating building an offshore facility to achieve say 15% cost differential, AND they know they now will be double taxed, this approach to "cost savings" is less advantageous.

No, it won't stop offshoring but it is something. There is nothing not to like about this plan. Its smart and moderate.
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