If you can find a Democrat candidate who isn’t accusing his or her opponent of shipping jobs overseas, please let me know about it. It’s a constant drumbeat from the left – “Those evil Republicans are protecting corporations that ship jobs overseas. I want to close the loopholes that allow them to do so. I’m your friend.” It’s pretty much all my progressive representative, Dan Maffei, has to run on (other than making up lies about Ann Marie Buerkle.) This is what he tells us on his website:
Over the summer, I unveiled a bill that will help spur job creation throughout our district and across the country. For too long, we have stood idly by and allowed big corporations ship our jobs overseas. The legislation I introduced will end this by closing the tax loopholes that encourage companies to outsource.
To be blunt, Dan Maffei, like the rest of his fellow progressive Democrats, is a liar. (In all fairness, he does indicate that he would lower the top corporate tax rate to 23%, but we all know his fellow Democrats would never go for that. It’s just window dressing, a way to get people like you to think he’s moderate.)
Here’s the truth about the “tax loopholes” Maffei speaks of:
This accusation dates back at least to 2004, when John Kerry raised it repeatedly against President Bush. Because the United States has a relatively high corporate tax rate, the Internal Revenue code has for several decades included a “loophole” that protects U.S.-based multinational companies from being taxed on profits earned by overseas operations. The sensible solution, of course, would be to remove the need for the “loophole” by reducing corporate tax rates. Instead, after Democrats took control of Congress in 2006, Texas Democrat Rep. Lloyd Doggett attached to a House farm bill a measure that amounted to a tax increase of more than $7 billion on U.S. companies that do business overseas. President Bush threatened a veto and the Democrat-controlled Senate stripped the measure from the farm bill.
Amidst that 2007 controversy, ATR issued a “legislative alert” informing members of Congress that a vote in favor of the Doggett amendment would be considered a violation of the Taxpayer Protection Pledge. Such is the pretext for the ridiculously misleading accusation that any candidate who has signed the no-tax-increase pledge is in favor of “outsourcing jobs… to foreign countries,” as the mailer against Parrott phrases it. This protectionist rhetoric was promoted as the Democrats’ last best hope for political survival in an Oct. 6 memo from strategists James Carville and Stanley Greenberg, and is now part of a predictable arsenal of attack ads against Republicans.
Read the whole thing, as it goes on to document attacks against Republicans, including Ann Marie Buerkle. If Dan Maffei and his buddies succeed in “closing the tax loophole” how many American companies with operations overseas will simply pack up, and move their entire operation out of the US?
H/T and thanks to The Other McCain, who wrote the article and included a link to this blog.