Well, we will have to see how the citizens react to this.
While it is easy to proclaim that we should not encourage corporations to move their operations overseas; are the citizens ready to accept the higher prices that their services/products will cost if the corporation uses American labour?
It will still come down to profit. If a corporation can still make a profit by moving operations overseas, they will continue to do so regardless of any tax changes.
I do, however, agree with the premise that US government should never encourage, through tax laws, corporations moving business operations outside of the country.
If a company chooses to do so, that's their business decision, but the government should not encourage it.
I actually feel that companies that move operations out of our country should not only NOT get a tax break, but they should pay an EXTRA tax so that the companies are encouraged to keep operations inside this country.
But the bottom line is that many citizens want the best of both worlds. They want to keep all the business operations in the US but want to continue to enjoy the lower prices of overseas labour. Well, I am afraid you can't have both unless you are willing to cut American wages to match Indian/China/... levels.
So, just to be academically difficult: As a capitalist, should I care about this? As a capitalist, I want the mostest for the leastest.
