Republicans (minus Cao) vote unanimously to protect tax breaks for outsourcers

[Torie]

One of the most important reasons that I am still a Pubbie despite the stresses, and there are, is that I believe in most instances in free trade. That and tort lawyers, and teachers unions, and fiscal prudence, are what still anneals me, but probably the hottest button of all for me is when I detect the noisome smell of protectionism. US tax policy is already less friendly to outsourcing from a tax standpoint, than in most of Europe. Under US tax law, certain kinds of income are taxes instantly in the US, even if the profits are not repatriated. I am not sure that is the case in Europe.

And just why companies should pay a penalty by losing tax breaks based on where they choose to fabricate a part of their product escapes me. And I wonder if this violates various and sundry international agreements, including GATT. I bet this will end up in US court or international court if this actually becomes law. It will also probably push down equity prices, which will not help with economic recovery in the US.