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Offshore World
If B. Hussein Obama raises corp taxes, will Microsoft move offshore?
http://www.bloomberg.com/apps/news?pid=20601087&sid=amBiYGyHOkZ8
June 3 (Bloomberg) -- Microsoft Corp. Chief Executive Officer Steven Ballmer said the world’s largest software company would move some employees offshore if Congress enacts President Barack Obama’s plans to impose higher taxes on U.S. companies’ ....................
When any business that supplies a service or product to consumers has an increase in it's overhead (i.e. raw materials, labor costs, energy costs, TAXES, etc.) those costs are passed on to the consumer through higher prices.
When these overhead costs get so high that the American company can no longer compete within the Global trade economy, they have limited choices if they wish to continue in business. Reduce their overhead by shrinking their labor force (job cuts), Streamline their production process if possible. Buy cheaper "ingredients" (which means a lower quality product by and large) plus other cost cutting devices.
But once all these measures have been taken and they still face competition from foreign companies that have lower taxes, or worse--government subsidies, then these American companies have to move to lower taxed environment in order to compete.
These are economic realities that many people choose to ignore when they demand higher taxes, higher wages, environmental penalties, etc. on U.S. companies. Sooner or later they will move offshore and there will be NO jobs at any wage.
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