Firms Shipping Jobs to India Following Unfair Practices: Obama
US President Barack Obama has blamed companies outsourcing business to Indian saying that they are following unfair business practices, reported IANS.
The president also said that his proposal to tax firms which are shipping jobs overseas was only aimed at providing a level playing field, said report.
“If you are a business here, entirely located in the United States, and investing in the United States, and hiring workers in the United States, you are paying a 35 percent rate,” he was quoted as saying in an Oval office interview with Bloomberg/Businessweek.
“If you are a multinational and you are investing in India, and your workforce is in India, and your plants and equipment are in India, but your headquarters are here, you are taking deductions on all the expenses in India, but you are keeping your profits outside the United States, that just doesn’t seem entirely fair,” Obama was quoted as saying.
“The same is true where you have companies that have 90 percent of their sales in the United States, but are posting 90 percent of their profits overseas.”
“You get a sense there that the accountants have been busy,” the president was quoted as saying.
Obama also suggested that these companies were taking unfair advantage of current tax laws.
“Taking note of some legitimate concerns about a similar proposal last year, we made modifications around some of these proposals,” he was quoted as saying
