• The Heritage Network
    • Resize:
    • A
    • A
    • A
  • Donate
  • Morning Bell: Stop Sending Jobs Overseas

    Today, the Labor Department released its monthly jobs report showing that the U.S. economy added 216,000 jobs in March and unemployment fell to 8.8 percent. Despite these encouraging numbers, Americans still consistently tell pollsters that jobs and the economy are the most important problems facing the country. And yesterday, Gallup released a poll showing that the number one way Americans would like to see more United States jobs created is to stop sending new jobs overseas. That is a fabulous idea, and the simplest way to accomplish it would be to lower out nation’s corporate tax rate.

    The United States was once a leader in tax rate reduction. In 1981, President Ronald Reagan passed a broad tax cut package to encourage economic growth. How well did it work? Just compare the drops in unemployment from both the Reagan and the Obama economic recoveries. Since the Obama recovery began 21 months ago, the national unemployment rate has fallen only 0.6 points, from 9.4 percent in July 2009 to 8.8 percent today. Contrast those anemic results with the robust job growth that occurred during the Reagan recovery in the ’80s. By the 21-month mark of the Reagan recovery, unemployment had dropped from 10.8 percent to 7.5 percent—a 3.3 point drop.

    And Reagan didn’t stop there. In 1986 he went on to lower the federal corporate tax rate from 46 to 34 percent. The results speak for themselves: when Reagan left office in January 1989, the nation’s unemployment rate was just 5.3 percent. The world not only noted Reagan’s success but then went on to copy his successful tax cutting policies. In 1989 the developed nations in the Organization for Economic Cooperation and Development (OECD) had an average top marginal corporate tax rate well above the U.S.’s 34 percent rate. Since that time the world’s industrialized nations have dropped their average corporate tax rate to about 25 percent. The U.S., meanwhile, has gone in the opposite direction. We now have a 35 percent rate at the federal level that rises to 39 percent once the average of state corporate taxes are mixed in. And today, Japan is scheduled to implement its own corporate rate reduction, which will officially make our 35 percent rate the highest corporate tax rate in the world.

    Owning the world’s highest corporate tax rate is a jobs killer. Imagine you are a global corporation looking to invest in a new factory that will produce goods for American consumers. Do you build your factory with hundreds of new manufacturing jobs in Canada, where the top central government tax rate is 16.5 percent? Or do you choose a location in the United States, where the top tax rate is 35 percent? Is that even a choice? Our high corporate tax rates are a huge manufacturing job repellent.

    Liberals have long argued that corporate tax cuts are not necessary since the effective corporate tax rate (calculated by dividing the amount businesses pay in taxes by their incomes) is comparable to other OECD countries. But gaming the tax system to reduce your effective tax rate is not free. It requires a substantial investment in tax lawyers and lobbyists for major corporations to get your tax bill down. So again consider a foreign investor or medium-size corporation looking to expand production. Neither of the firms has the tax lawyers and lobbyists needed to lower their effective tax rate. Do they choose low-tax Canada, where they can focus on their core business and pay low taxes? Or do they choose the U.S., which requires significant resources devoted to tax law compliance and lobbyists in Washington to assure a low tax rate? Again, is this even a choice?

    The U.S. economy is slowly beginning to finally add jobs to the economy. But so is the rest of the world, and many economies are growing much faster. If we want to stay competitive, if we want to stop sending jobs overseas, we must lower our corporate tax rate.

    Quick Hits:

    • Members of the NATO alliance have sternly warned the rebels in Libya not to attack civilians as they try to overthrow Muammar Qadhafi.
    • At least 40 civilians have been killed in air strikes by Western forces in Tripoli, the top Vatican official in the Libyan capital told a Catholic news agency on Thursday.
    • Undisciplined Libyan rebel forces are still proving no match for Qadhafi’s army.
    • The Wisconsin Professional Police Association is circulating letters to businesses in southeast Wisconsin telling them to support collective bargaining for government unions or else.
    • Morning Bell will be back, as always, on Monday. But today is this author’s last day. It has been a pleasure serving all of you over these past three years.
    Posted in Ongoing Priorities [slideshow_deploy]

    70 Responses to Morning Bell: Stop Sending Jobs Overseas

    1. Ben Mills, Colorado says:

      Conn, sorry to hear that this is your last day authoring what I consider to be the best daily email available.

      The Heritage Foundation is a shining star of vital information for all Americans who are concerned that the real story is buried by the Mainstream press. The information provided arms conservatives, and all those interested in preserving the America we love, with easy to understand facts to counter the liberal/progressive talking points that for many, is the only side of the story they ever hear.

      Thank you very much!

      • Zach says:

        even if drop the tax the 10 % they will not add jobs.. they will put in their pockets. and run with it. It's funny these companys make record money. unlike alot of the companys back in the 80's. They have no intrest in giving us money. They would rather keep it for them selfs..
        Oh and don't let them lie.. are unemployment rate is somewhere around 18 to 20 %,,,
        And go back in history and look.. i'd like to know when was the last time our american dollar … 1 dollar .. is worth .74 euro.. lol….. and in GBP .62…. when was the last time we were under a dollar over there… and see if history is going to repeat it's self.. lol…. I'd like to know..

        So we are doing so well but are money is not even worth a dollar in other countrys… Think about it.

        • Zach says:

          Just like.
          Florida has made their own mind up that unemployment now is only paid for 16 to 20 weeks.. but they get to pocket peoples unemployment payments over years or 20 year.. but 20 weeks and half of what you make at an max of 280… even if you made 40k…. 280 a week

          Lol. You could make more at burger king.. oh if they where hiring and would give you 40 hours.. it is so sad. but you know what.. The time is coming. The great depression.. why
          Cause our country is run by the rich and greedy. and the money is going to run out..
          I have stoped all my spending and only get what i need now. I did fill my gas for 1.94 thanks to winndixie fuel perks… for the 1st time in over a year…

    2. ThomNJ says:

      Good luck Mr. Carroll. Thank you for your work.

    3. Keith V, Michigan says:

      Thank you to "this author", if that is you Conn, who is moving on from Morning Bell after today. Your thoughts have always been very insightful. I hope the Morning Bell can continue the excellent daily commentary you have provided the past couple years. The bar has been set high. Good luck.

    4. Wayne, Illinois says:

      Sir, All of this talk of jobs going overseas and unemployment falling is giving me a head ache. First. if the unions had not priced themselves out of the job market and employers would not hire illegals there would be plenty of jobs. And yes people will work for minimum wages. I would. Second people keep forgetting that as unemployment benefits end you are no longer considered unemployed. These people become forgotten. Wayne – cyskee@att.net

    5. C Foster, Free Union says:

      Sorry to see the author go — the work has been good.

    6. John says:

      The Fair Tax (fairtax.org) would be a great solution for this. Today, all of our taxes are bundled into the cost of goods made in the United States, whether sold in the US or exported to other counties. With the Fair Tax, there would no longer be a hidden tax in the price of goods. Rather, goods purchased in the United States would have the tax added to the price of the goods. This would be the same for goods produced here or on imports, effectively reducng the price of US goods by around 30%. It works the same way on exports. Our goods would be 30% cheaper than they are today. How does this not produce more jobs?

    7. Dave, Florida says:

      Corporate Tax Cuts Alone will not bring jobs back. Labor is too cheap overseas and its use is destroying us. Import Tariffs on goods, services and labor are the only mechanism that can save America. Our founding fathers established import tariffs at the beginning of our country and we used them successfully for more then the first one hundred and fifty years of our existence; the reduction of them is what has led to our economic destruction.

      To save our economy we need an immediate 40% tax on foreign labor and a scaled tax on imports based on trade deficits; one that would tax Chinese Imports at around 40%.

    8. Ken Pratt, USA says:

      When do we see an article about who actually pays all taxes? It is nice to blame compaines but it seems every writer neatly forgets that individual consumers pay all tax.

    9. Ralph Westberg says:

      Jobs are the number one issue in America. Your analysis of how to bring our jobs back doesn't fully address the problems associated with this issue. Take 15 minutes and watch the U-Tube "Restoring our Jobs" I would appreciate your comments


    10. Ray Reed, Columbus, says:

      Where does The Heritage Foundation stand on the FairTax proposal? Link: http://www.fairtax.org/site/PageServer

      As is so aptly pointed out by Mr. Carroll, our current system of taxation is not only now the highest corporate rate, it requires corporations to invest heavily in tax lawyers and lobbyists to take the most advantage of the tax code and/or obtain "carve-outs" for them. (Think General Electric as the heaviest hitter in that vein.)

      If the FairTax proposal was implemented with the replacement of all federal income taxes, both corporate and personal, and payroll taxes with a 23% inclusive national sales tax–i.e., the tax would already be included in the price of the goods or services we buy, not added to it–corporations would benefit from not having to employ all those lawyers and lobbyists and individuals would benefit from the greatly reduced number of lobbyists unduly influencing our representatives in Washington. (Also, individuals would have the benefits of more money in their pay checks because of no deductions for the various federal income and payroll taxes, no need to file federal income tax returns AND their financial/economic privacy better protected from federal intrusions.)

    11. Ralph Westberg, 8855 says:

      Jobs are the number one isssue in America. Your analysis of how to bring our jobs back doesn't fully address the problems associated with this issue. Take 15 minutes and watch the U-Tube entitled "Restoring our Jobs". I would appreciate your comments.


    12. Bernard P. Giroux, S says:


      Read Andy Grove's comments about "scaling" and why jobs sent overseas has got to stop, even at the expense of a trade war.

    13. Bob McClure says:

      There needs to be a performace criteria in granting lower corporate taxes in exchange of bringing jobs BACK from overseas. That could be a tax credit/employee, other other metrix. Simple reducing the overall corporate tax does not insure that jobs will return.

    14. Oscar Brown, Jackson says:

      It's time for the Fair Tax. Do away with corporate taxes, period, and watch companies rush to set up shop here.

    15. toledofan says:

      Good luck Mr. C., it's been a pleasure reading your insights on the Morning Bell. I have to say that as long as Obama and the Democrats control 2/3 of the political process, no matter how good the advise or logic, nothing is going to change. It's obvious from the past 2.5 years of the Obama Administrion, that they not only don't have a clue, they are so imbedded into their socialist agenda that they can't see the forest from the trees. The arrogance is stiffling and baffling, so, until some really big mistake is made and people become angry, life, as it is in America, will remain.

    16. Dave Woolley, Manche says:

      Sure, reduce the corporate tax rate – - but only with a fair Flat Tax that closes all corporate tax loopholes and allows everyone to contribute a fair share to support our government's necessary needs. I strongly back a Flat Tax, as proposed by Rep Woodall (R) Georgia.

    17. George Colgrove VA says:

      Sorry to see you go Conn, hope your future endevors have even a greater positive impact on freedom and liberty. You will be missed here on HF. It has been good sharing in your debates! You are a good man!

      It is not only jobs that this hidious government is sending overseas it is our weath and our children's future!



      - “WSJ: More Americans work for govt than manufacturing, farming, fishing, forestry, mining, utilities — combined…”

      - “Government losses in GM far higher than claimed…”

      - “Bosses at bailed-out FANNIE, FREDDIE were paid millions…”

      - “WALMART chief warns of 'serious' inflation in coming months… “

      - “FED Threatens Higher Interest Rates…”

      - “5,000 'non-citizens' voted in Colo election in 2010…”

      - “Obama Accepts 'Transparency' Award — in Secret!”

      - “Pentagon Art: $600,000 Gurgling Toad Sculpture….”

      Why are we asked to trust the federal workforce? These goons shake us down to satisfy their greed and also to benefit their friends. Must be nice to be a fed.

      Congress, unless you are a party to this corruption and generational theft, it is time to start serious cutting NOW! The looting of the treasury is under way. The Fed Reserve is using quantitative easing to drive up inflation to devalue the debt. Essentially wiping it out by making, us pay $30 for a gallon of milk. What they cannot take from us in taxes they will force from us in a massive increase to the cost of living. Congress, we the people need help from someone – it is supposed to be you! The federal workforce in the government is stealing our future!

    18. Steve Cafaro Fort My says:

      The notion of stopping the flow of jobs to foreign countries is 35 years past due. I am for any initiative that will restore American jobs. Please check http://www.SOS.SaveOurSovereignty.US for a website dedicated to this cause.

      I am all in favor of reducing corporate taxes, but I am not certain that it would restore American jobs. In the light General Electric and their 14 billion dollar profit who paid no taxes, I do not think American corporations would be incentivized by lower taxes.

      America cannot compete with foreign countries that pay a small fraction of the American wage, and whose laws on child labor, labor standards, work safety and environmental concern are weak, if they exist. Are these not the real resons why American corporations prefer foreign workers?

    19. Mike, New York says:

      Congratulations on passing that 700,000 +++ membership mark, hopefully we can double that number with in the next two years, I think it's possible, if we put an Education ( Enlightenment ) Campaign together that targets the general "hard working" union membership, ( Teachers, Municipal Workers, etc. ) explaining that Conservatives are not Anti-Union, only Anti-Poor, Lazy, Incompetent Management, and in this Management group I am including Corporate Managers, Union Managers, Elected Officials. In the past when the economy and corporations are doing well, it is easy to become lazy and negotiate very lucrative pay and benefit packages thinking that the cost can always be passed on to the consumer and the tax payer. Now is the time to change that philosophy, only fair and affordable contracts must be negotiated, and not only thinking short term but long term. Until we get strong management with exceptional negotiating skills, we will continue to see jobs going to foreign lands, taxes increasing and all debt rising. Perhapes the slogan should be: "If someone offers you something for nothing, Remember, You (we ) can't afford it. Excuse me if I am stating the obvious, more to come, keep up the great work. Mike

    20. Butcher, St. Louis says:

      I don't know…something about this just doesn't smell right when many US companies pay $0 tax anyway.. .http://money.cnn.com/2010/04/16/news/companies/ge_7000_tax_returns/

      Companies go overseas because they don't have to pay American salaries, not American taxes.

    21. Monica, Slatington P says:

      I don't know that liberals will ever understand the fact that businesses need to thrive in order for the people to thrive. They are so darned worried that somebody might get rich and that wouldn't be fair! They'd rather see the government control things through taxes and regulations and have a mediocre (or worse) economy.

    22. Kevin H, college par says:

      I remember when Heritage was touting Ireland as being the best example of conservative economic princicples and praised them for their low corporate tax rates – and look at how horribly their economy had fallen and how they have the greatest pile of debt % GDP per capita of any industrialized nation. Same for Texas – they were beign praised and now look at how bad things are there.

      Simply put, the far right teaparty type of economics do not work and they never have worked.

      Folks are commenting that Obama and Dems don't have a clue, obviously, these folks have been in a hole the last 3 years. Do you not remember where the economy, the markets, the country, job loss rate, consumer confidence, business spending were in late 2008? Compare them to what they are now – and somehow try to make the case that the Dems don't know how rto handle the economy. Everything is 100 times better now, literally – S&P and DOW are 100% bigger than when Obama took over – the biggest market growth ever ibn US History over 2 years. Ever in US History.

      You have to stop listening to the far right lies and actually look at the numbers and stats.

    23. Robert, North Richla says:

      Best wishes, Conn. I have enjoyed your work tremendously. I have to take issue with the goal of this message. Yes, our corporate income tax rate needs to come down (significantly), but in an orderly process – in FY2009 corporate income taxes only provided 4% of total federal revenue. A faster, and even better way to add real jobs is to open up ANWR and build the Keystone Pipeline, which will create over 1 million, real, new jobs while shoring up our energy industry. Then, just $65 billion in new, real infrastructure spending for necessary highway improvements and bridge repairs (70,000 needed) will create over 2 million jobs directly and improve the quality of life (while saving lives) of all citizens – while increasing economic activity across the entire nation.

    24. Frank, Florida says:

      1. We need to have a simple tax system so that businesses don't have to hire expensive lawyers & tax specialists to cut their effective corporate tax rate down from 39%. I prefer the concept of a National Sales Tax, which would completely eliminate the Federal Income Tax system & the IRS. This way everyone has some "skin in the game" and has an incentive to keep taxes as low as possible rather than have lots of people relying on low-to-no taxes & government handouts.

      2. If we don't eliminate Federal Income Taxes, make it so simple everyone can do it on a postcard sized form with no deductions. Then cut & try to phase out corporate taxes as much as possible.

      3. I like Trump's idea: Put a 25% tax on all goods imported from China (or any other nation) that artificially keeps their currency down so as to be able to sell to us goods at an artificially low price. Rather than build new factories in China (or elsewhere) and send those products to be sold to us in the USA, companies will build there factories here again.

      4. Because ALL TAXES eventually wind up passed on (directly or indirectly) to the end consumer, to be competitive in the world's economy we must keep our taxes as low as possible at all levels. This means balancing the budget & paying down the debt so as to lower our yearly interest payments. (Yes this will take a very long time, but it's our moral obligation to do it!). This won't be achieved unless we dramatically reduce the size & scope of the Federal Government & return to a smaller, limited & more Constitutional Federal Government along the lines envisioned by our Founding Fathers. This must include a slow phasing out of entitlements & the welfare state as we know it over a period of time while allowing those retired or near retirement to keep the promised benefits & allowing others to "opt out" of paying SSI, Medicare, Medicaid taxes (if the Federal Income Tax is not replaced by a simple Federal Sales Tax).

      This nation CAN do it, but not unless we get serious about it asap. If you read the book "Lords of Finance", even the Weimar Republic in post WWI Germany COULD have paid off their war debts… IF THEY WANTED TO. But they didn't want to & opted instead for unnecessary social spending while trying to get out of paying their debt. Their hurt pride also was a great factor in not paying back the huge debt they felt was unfair. Their ruinous financial policies to avoid paying their debt lead to hyperinflation & eventually Hitler.

      NOBODY FORCED OUR PRESENT DEBT UPON US. Thus, we cannot say we will not pay it back because it is unfair. Instead WE will be the unfair ones if we try to default on paying it by one or more of the following: actual default, inflation, currency devaluation or setting artificially low interest rates. Printing money out of thin air ("quantitative easing") is resulting in currency devaluation & inflation. Artificially low interest rates are in place. The Federal Reserve is attempting a stealth default on our debt using 3 of the 4 default mechanisms. It is immoral for them to continue in that manner & unfair to all the holders of US Federal debt instruments. We, as a nation, need to do better!

    25. Glenn Drennen says:

      Lowering the corporate tax rate is good, but not as good as eliminating the income tax and replacing that debacle with the Fairtax. Get the Fairtax signed into law, and the corporations will be fighting one another to get back on American shores and set up shop. The economy will flourish beyond your wildest imagination. Fairtax.org.

    26. Doug Whaley, Lake Ha says:

      What difference does the corporate tax rate make when there are so many loop holes in the tax code the major corporations actually pay little or no corporate tax anyway?

      As far as fixing it as long as there are politicians and their primary weapon is the tax code there will never be a fair tax for anyone. Take away the power of the politicians to tax and you take away most of their power and things will start to get done that need to be done.

      Give only voters the right to raise or lower taxes along with a balanced budget amendment and you will see things straighten out in a hurry. I don't think it will ever happen because politicians will never give up their power. Just look at the republican party now. Republicans were swept into power in the house to stop spending and the old guard in the republican party refuses to go along with this.

      Only very minute changes will ever happen in government because politicians no longer represent their constituents they represent themselves.

    27. Al Wormwood Standish says:

      Good morning,

      A lot of America's manufacturing moved off shore because of the cheaper labor rate. GTE moved from this community to Texas. The incentive probably was the cheaper labor there…perhaps there were other reasons. It seems corporate taxes was not the reason for that move, but I suppose it could be that the town/city they moved to offered them some incentive.

      My question is, which is the greater incentive for an industry to relocate, corporate tax rate or cheaper labor? It seems to me that the labor rate is the greater incentive. I am in the throws of starting my own small business and I know I probably could have my product manufactured cheaper in China or India. Why should I not do that?

      Thank you,

      Al Wormwood

    28. Mike from Long Islan says:

      The "nanny state" needs to tax all the "corporate baddies" in order to pay for their "super socialist" government programs. What they don't realize is, that is like a submarine that fires a torpedo that circles around and comes back to hit the sub. Not good.

    29. Pam ... FL says:

      One of the issues that needs your attention concerning sending jobs oversees is the over-regulation of the fishing industries in the U.S. There are many ways to have sustainable fisheries without putting America's seafood producers, fishermen, shrimpers, and all, out of work. This has become a major problem, whether in the commercial fisheries or in the recreational fisheries.

      Once America's commercial fishermen have lost their ability to provide the fresh seafood to the U.S., their markets will reach overseas to provide for the high demand of seafood.

      Once the recreational fishermen, whether for-hire or private anglers, have lost the privilege to fish America's waters, they will travel elsewhere to catch their fish. Many will travel to other countries.

      Regulations now are set to 'reduce participation in the fishery' here in the U.S.- to eliminate jobs.

    30. Jay Pittard, London says:

      In my experience and observation, taxes are one of the big 3 factors that cripple employment in the US. The others are labor policy (minimum wage statutes, benefit mandates and artificial restrictions on workloads) and regulation (the big three are healthcare, EPA and OSHA, followed by industry-specific regulations that vary from firm to firm). We need a coherent industrial policy in this country with a clearly articulated vision for making it happen. Without that, we will be on a merry-go-round playing whack-a-mole with one after the other of those three.

    31. Ken Jarvis - Las Veg says:

      I think Obama is TRYING to Create Jobs,

      but the Opponents are HF, Murdochs Empire and the GOP,

      NONE of them help him.

    32. charles post says:

      Lowering tax rates will never bring jobs back. As long as the entire employee cost infrastructure is much lower out of the USA, jobs will leave on all levels. Simple, inescapable fact as a result of this new era of austere economics and the uncertain regulatory climate.

    33. Roger TN says:

      Put a few people on the Jobs Creation Council that isn't sending thousands of our US jobs overseas. (21,000 from GE payrolls gone) Actually, this council will do no more than all the summits, councils and special groups of politicians being repaid for their past service have done in so many other applications. Still would like to see how much the Deficit Reduction Committee spent to produce a document used for discussion purposes only. The jobs creation will not be solved by politicians in DC or their cronies. It will take regulatory limits and repeals to get back on track, Want to bet on that happening?

    34. Bob Magill, Tehachap says:

      Lowering the corporate rate is great but will it slow jobs from going overseas, really? General Electric one of , if not the largest corporation in the world didn't pay anything, zip, zero, nada taxes last year! Yet, even though they didn't pay one red cent, they still mamaged to ship over twenty one thousand jobs overseas. So I do agree that lowering corporate rate will help, it won't change much until the playing field is changed so that even folks like GE have to pay their fair share. Obama should jump at the chance to tell the head of GE that he needs to contribute to the leftist view of redistribution of wealth and social justice. HA, that will never happen!

    35. Dwana Townsend, Harv says:

      I agree with Ralph, our tax code is not the only issue which prevents job creation here in the US. We are investing US dollars in developing other countries recourses, letting China as well as other countries import their goods for free, how is this fair to the American Public? Our government would rather import from China and other countries because the product is cheaper as well as substandard to anything that we should be producing in our own country. We have become a nation of consumers instead of producers. I realize this is a global economy, however without effective leadership, someone who is strong enough and willing to level the playing field, the rest of the world will out produce the US, continue to develop and strengthen their economies all on the backs of the each American. It won't be long before one of these countries becomes the new Super Power in the world, at which time we will be subjected to taking the back seat to the rest of the world and become a mere blip on the world stage. Is this all by design, or is it that our leadership is intimidated and to afraid to tackle these issues? As far as Libya goes, I have to ask the question, was this really in the best interest of the United States? Do you think it possible that Quadaffi actually suckered the US and its influences to his country to further weaken not only our economy, but our military and the way we are viewed by the rest of the world? Was this a huge diversion set up by someother driving force and what is really the agenda here "think global". HA!

    36. Stacey in So Calif says:

      Corporate taxes are only part of the problem. The other part of the problem is the UNIONS (which may be even more instrumental in shipping those jobs offshore than the tax man).

      Even if corporate taxes were to be completely abolished by something like the FairTax, the reality remains that no company would choose to open a plant in the USA knowing it will be bullied into paying its workforce something like $35 per hour to do a job that commands an average of, say, $10 per hour in the global marketplace (not real numbers–just illustrating a point).

      As long as these things don't change, non-service jobs will keep disappearing in this country.

      p.s., thanks for the all great columns Mr Carroll… you'll be missed.

    37. Norm LA says:

      Seems to me that Reagan’s tax policy was so powerful that the tax cuts and rate cuts made the economic environment so positive that it made the Clinton years. The Bush cuts also had a positive effect after the 9 1 1 attacks. This current president knows just what he is doing in refusing to implement a similar strategy. Extending the Bush tax cuts, it would seem, had a fair benefit, just last December. But they said the policy was working, while unemployment was climbing. This economy though is slowly coming back, just because in part of the cycles of supply and demand. When any inventory is depleted, it must be restored, albeit to a minimum level. It certainly is overcoming the Obama regressive policies. I do not believe the numbers, although it is a great sign, this bunch changes the facts to make themselves look good and the magic promise of 8% is where they want the number on election day.

    38. michael j mudrak car says:

      With manufacturing in the us going by the wayside if we got into a war situation

      let use north korea as example where would we go to get needed supplies.

      We need to reestablish manufacturing.Has anyone thought of proposing a

      corporate tax rate of 12 to 15 % with no deductions.And 35 % for those who farm their jobs out. There are a hand full of large co. that pay little or no taxes.

    39. Dale, El Paso, TEXAS says:

      Yes…high tax rates have definitely pushed jobs overseas, no doubt. But I will go a step further in adding that unions also have had a hand in this as well. I feel that it is time to reign in the unions and, go to either a flat tax or fair tax. But do something!! We're drowning in taxes and job loss!

      Good luck Mr. Carroll. I have enjoyed your thoughts and insights.

    40. Scott says:

      Employeers will not stop the outsourcing of jobs to overseas markets until we do something to reign in costs and allow American based manufacturing to be competitive with the global market. This means doing many things, but the first step must be to do away with the counter-productive and overpriced Labor Union employee's. Non-union businesses are profitable and productive, where as Union shop's are forced to carry a large number of unpoductive and expensive employee's simply because they have seniority in the union.

      American businesses need to grow a pair and tell the Labor Unions to get lost. We no longer face the type of society that made the Labor Unions a necessity, i.e. the robber baron dynasties of the early 1900's. People are aware of the rights that they are entitled to, and know that the employeer's need them as much as they need the jobs. This being said, employee's need to realize that if they try to force the employeer to pay to high a price for their labor, s/he is going to go out of business. I would much rather work for a lesser wage that keeps my shop open then not to work at all.

      Labor Unions and, even worse, Umbrella Unions like SEIU, are destroying our ability to compete in the global market. We need to eliminate them and get back to being the greatest industrial force in the world.

    41. cathy, maine says:

      I'd like to see the thousands and thousands of pages of favors and punishments that is the current tax code REPLACED (not in addition to) by a fair tax. Fairtax.org spells it all out. it does take the power to social engineer away from congress, so they don't want it, but it would give the power and money back to the taxpayer. why would we not demand this from our elected officials? just wondering?

    42. Leon Lundquist, Dura says:

      The DINOs are running around America spraying Job Repellant! That's funny! Thanks. Progressives are killing America for the fact of their own transgressions! The Income Tax denies Americans Capital Formation, it is flawed, destructive and manipulative! AND Job Killing! A Progressive Demolition Plutocrat's dream! It Redistributes Wealth! Bonus!

      Corporate Income Tax? Double dog destructive. The Big Secret is that Consumers (all of us) pay all the taxes! It is hateful, I know, but I think Obama needed the Gulf Oil Spill! He needed a motive for continuing to cripple American Oil. A man caused Environmental Disaster is perfectly useful to electrify Obama's Political Base. It was practically to the day after Obama announced he was 'getting behind Gulf Oil.' Statistical Analysis says to me the Disaster was impossible without severe sabotage.The Communists love to hate Big Business.

      Remember when Michael Moore said "America isn't broke!" He has his greedy eye on the $4 Trillion that Business doesn't dare to spend. Greedy Government makes more 'profit' from Oil than those 'greedy' (6% margin) Oil Companies do! Consumers pay it AND the gigantic Compliance Costs.The Sorcery is they don't know it!

    43. Hermes LIBERTY New-Y says:

      As you have said, other economies are growing much faster. The problem in US is to see the Real Problem; not easy so far. The best way to put it is that US can lead again, but only after Refounding itself drastically. A second American Revolution, with very innovative idea that reinforce and complete our Founding Fathers start are Necessary. This, and only this, can make us make once more a huge difference. Otherwise our exception is withering, attacket by hiding enemies.

    44. Dr. Henry D. Sinopol says:

      Berry O. & the socialists didn't begin this overseas move, it was started long ago by life-long politicians and bankers seeking profits over patriotism. Barry would like nothing more than to cripple our economy. He's not stupid, he's committed to his ideology. What are the Repubicans committed to?…re-election.

      The Federal Reserve, an organization that is not regulated, the IRS an organization that is empowered to lock-up people and fat-cat business owners who gave the bank away when times were good, all have part of the blame. Unions, now used to getting their way are now blamed for items that were freely given in the past. Of course they are out of control…they were given things without any effort.

      Eliminate the tax code, eliminate the Federal Reserve, eliminate life-long politicians and select business leaders with a strategy to build for the future – not take it all now and forget the future.

    45. Norm LA says:

      Obama has created jobs;. 200,000 public sector jobs, thus sucking the guts out of the private sector. It is not the job of government to create jobs. It is their responsibility to create the environment for job creation. Tax dollars pay those ballooned salaries. And then that money is not available for business growth. Increasing taxes and regulatory requirements on those who do create jobs, slows growth. Much to the chagrin of some, a job is not a social program. One does not help an economy, create the potential for profits and therefore create the need for additional employees through moratoriums, laws and other disincentives. And HF and Republicans in the congress are not implementing new measures that destroy an economy; that is the apparent job of the democrats, who are the saviors of some in this audience. Republicans are trying to cut the spending that is destroying the economy.

    46. RUTH SC says:

      Whatever it takes to create jobs, that is what the government needs to do. So what if someone makes money? Lets face it Rich people create jobs, poor take handouts, no poor person in this country creates jobs. Jealousy gets us no where. You can stay mad at the people who were smart enough to make money, while they created jobs or you can shut up, bite the bullet stop complaining about who has more than you and let the government create jobs so you can feed your families.Raising taxes chases industry to other countries, common sense tells you if you raise the price, no one buys, lower the price and everyone finds a way to buy. It is the way of the market. When you start to think like an adult, you get a better understanding of how things work. Stores send out ads to let you know they lowered the prices, so you will come to that store and shop, creating business, therefore dropping the tax burden on companies that make products will make the co. want to stay in America. Why should they give up profits if they have no incentives?????

    47. Blair Franconia, NH says:

      Obama's finally going to bring jobs home to the USA! April Fools! Obama's not interested in that. If he was, he'd be fighting tooth and nail to make Americans the first in line for jobs.

    48. Gilbert Mauk, Scotts says:

      Having been involved in taking thousands of call center service jobs off shore over the past decade I feel qualified to comment on the article's assertion that the way to stop sending jobs offshoe would be to reduce the corporate tax rate.

      this is just one of many things that need to happen. 10 years ago the primary driver for taking jobs off shore was labor rate arbitrage. We got a significantly better educated employee for 25 to 40 % of the cost (or lower). While things are changing rapidly and unfavorably as these workforces become Americanized, we also got employees with stronger work ethics and who were more appreciative of their jobs (translating to lower attrition rates and hence lower operating costs), You cannot blame American business as they were simply following the dollar. I’m merely suggesting that the solution may not be as unidimensional as the tax rate assertion implies

    49. Jeanne Stotler,Woodb says:

      The jobless rate has never been accurate, it never included recent graduates, the self employed and now doesn't include those who's benefits have expired. We still have a long way to go to improve this mess and first step is to get a real president in the WH

    50. NCT, Colorado says:

      When the multi-national electronics/computer company I worked for began transferring producton to Singapore some 15 years ago, the largest – by far – financial factor was the tax rate. Without the corporate tax rate disparity, we would not have gone forward with the transfer. The manufacturing jobs are gone, the manufacturing engineering jobs are gone, many of our local suppliers are gone, and our manufacturing building, which was less than 10 years old when we vacated it, continues to sit empty. And today the Wall Street Journal reports that we have twice as many government jobs as manufacturing jobs in the USA. Hmmmm…

    51. Bobbie says:

      Conn. You were the first one I got to know. I will miss you very much. You're articles and research, always professional and comprehensive with your gift of logic. I enjoyed the retorts from those questioning your work, often humorous! You are an awesome person! Must be a qualification at Heritage? Thank you Conn, and Heritage for your integrity, you provide us with truth. Well wishes always to you, Conn!

      God Bless you!

      Mr. Obama claims the first thing he thinks about when he wakes up in the morning and the last thing he thinks about before going to bed. Gee, if he was doing the job of being president, he wouldn't have to think about the destruction and overburden he has intentionally put on the economy. Because it wouldn't exist. He wouldn't be so forceful to compete where government shouldn't be involved with the private sector as that just means he's against it. His intentional acts causes intentional uncertainty and it continues to remain. The economy is only improving because employers are working through the unnecessary impositions government is putting them through.

    52. PBennett. Arizona says:

      Yes, but this is like preaching to the choir. I'd venture that 100% of these readers are aware of the effect of cutting taxes.

      Somehow, this message needs to blanket the morons in Washington who, and I'm being 'kind' here, don't seem to have heard the message. Either that or, and I'm being truthful here, they are already aware and are just ignoring it in order to further their own political agendas.

    53. Philip Young pine gr says:

      The fact that more jobs are needed domestically is known to our representatives. They choose to disregard the information. We simply cannot compete with the profits companies make when they choose to employ overseas labor.

      An adjustment must be made to the expected wage and to the profitability of the company. Shareholders are not willing to forgo any increase in their investment to create more jobs domestically.

      There is no patriotism among corporations. They are simply interested in making as much money as they can. The working conditions that Americans require are unacceptable to most companies as they must invest in accommodating all the legislation such as ADA (1991) and OSHA and environmental regulations.

      What we must do is by pass our "representatives" and consolidate ourselves into a working force of individuals who demand change and will back this up with their vote. We have sufficient authority , if we unite, to not only get their attention but to make whatever changes are necessary for companies to move overseas.

      A Coalition of Conservatives for America – should be formed. Faxes and letters will do nothing. But unify and change will occur.

      Similarly, the GOP squanders valuable time while in office with perfunctory motions to appear actively working on reducing the deficit. They must have a very low opinion of our intelligence as it is clear that nothing has changed and it is business as usual.

      Consider the one seminal event that sent a strong message to politicians and has resulted in perhaps the most significant indication of our potential as a people to evoke change.

      While the Tea Party sent shock waves up the skirts of the elected; the singular fatal flaw in the movement congeals into stark relief with each passing hour; putting up appearances to protect their phony baloney jobs.

      We need a new party to actually represent a real threat to the entrenched machine and might of the political system which is sapping our strength and tapping into the treasury.

      It is stunningly simple, once American's realize that this show will continue. The reason? what motivation is there for GOP candidates or politicians to actually change?

      They are politicians and wily and clever at looking busy while achieving nothing, blaming others and taking credit for others efforts when success is even remotely possible.

      Think about this and decide. We should, as a nation, as a people, think and consider rather than react and retract into our guarded and safe delusions we consume on a daily basis.

      One of the largest problems has been the lack of continuity and consistency of Conservatives to the tenets and principles we extol. This seems to happen all the time (my short comment on Conservative Battleline 3/23 – pursues this argument in more detail).

      What if all the Conservatives of this nation were to put aside their differences regarding social issues and all agree to consolidate into one body and so that we react as one unit elected representatives review what is published to insure compliance with our Tenets and Principles.

      We then agree on an agenda that we focus on the following three priorities:

      1) Reduce the deficit

      2) Restructure taxation to better represent our country's needs and to promote job growth domestically.

      3) Re establish America as the preeminent economic power on the planet

      4) Add an amendment to the constitution that limits executive authority and access to the treasury and restricts any administrative actions which would exclude any emergency funding to sustain any financial institution (otherwise its is clearly a conflict of interest!)

      5) Mandates Congressional hearing and approval on any and all funding.

      6) Establishes a zero deficit mandate for the operation of the federal government.

      7) Excludes federal subsidies of states from the federal treasury rather the monies are retained in the respective state and is never placed into the federal reserve or treasury.

      After fiscal accountability is achieved then social issues can be addressed.

      All of this can happen if all Conservatives were to unify under one agenda and agree to work together to bring our country back to limited government and to conservative principles and tenets.

      Too simple!?? – yes it is but not too simple that it cannot be achieved it only requires we agree on this goal and begin the process of getting their.

      Conservatives UNITE!

    54. Mike, North Carolina says:

      It's maddening how not only is Leftist so-called "progressive" government, built on and fueled by "progressive" tax code and policy built on, used for, and featuring ever more and increasing "social(ist) engineering, confiscatory, counter-productive and destructive tax policies, taxes, and rates, all of which among other things of course chases jobs elsewhere, and all already too complex and so laced with disincentive to anybody except politicians looking to use it to buy votes to get and keep themselves and their cronies benefitting at our expense, and all getting ever more outrageously worse, but there is something else which is equally maddening.

      What's equally maddening is when Conservatives or anybody who would claim to have what it takes to see and know better than to repeat, not to mention fall for, the "siren song" of the so-called "Progressive" Left, which uses claims and numbers which are divorced from reality, as in such politicians who do so to claim things which are not so in the real world, and yet so-called "Conservatives" and others take and repeat some of the same misinformation/misleading as the government elitists in government and elsewhere.

      For example: The so-called "Obama Recovery". First of all, what "recovery"? Just ask any of the legions of out of business people, others unemployed, and any others who are also trying to figure out how to keep their lives together but without being well-connected politicians or one of their corporate cronies who can afford, among other things, the lobbyists and tax attorneys to do as they do! What you will hear if you ask us, the people, is "There is no 'recovery', 'Obama' or otherwise! The economy is still in the pit, and there are still too many businesses and jobs which are still gone, and still disappearing, including overseas! There is no 'recovery'! And trying to use numbers to say otherwise still doesn't make a recovery for us, the people, who are in the real world!"

    55. Diane Winston - Virg says:

      Morning Bell is excellent! It gives me concise facts in a readable form and gets to the heart of any matter. I look forward to it every day. I know I will learn something of value and understand what I read. Thank you!!! The sidebars get to the point also, and provide additional information on top story items. Sure hate to see you go and hope your successor is up to your standards!

    56. Pamela /Lincoln, ne says:

      THE problem I see is that democrats don't want anyone in upper management or making new business to be success here in this country if THEY can't control them. Get rid of unions and just a mediators that make sure things are going right and good in the employment world and that people are actually getting what they were told when they took the jobs, but stop unions who are nothing more than middle guys who get paid A LOT for what? and people they PROTECT who should other wise be gone. So many people want it all or others hurt for what they have and these seem to always be the ones who whine because they really don't want to have to work HARD for what they make. Stop that and maybe it would work. Give tax breaks where needed. Get oil jobs back so we don't have these gosh awful prices and then people really have an excuse to NOT work. etc. Get rid of welfare and get people out working if they want what they want……no more living off the tit!

      Stop being all democrats and republicans and start being about the PEOPLE.

      Stop being b.s. politicians and actually get good things done for the PEOPLE not some back road paved that no one goes one or swamp land so money goes into Joe Blows pocket who's a buddy. But for the PEOPLE

    57. Mike, North Carolina says:

      It is maddening how not only is a so-called "progressive" government tax code and policy built on, used for, and featuring ever more and increasing "social(ist) engineering, confiscatory, counter-productive and destructive tax policies, taxes, and rates; all of which is already and increasingly too complex and counter-productive; all of which of course chases jobs overseas as it is such an increasingly daunting disincentive to too many, except of course to the politicians who use it and abuse it as they choose to promote dependence upon them (and thus upon government) and thus buy votes to get and keep themselves, their cronies, and their cronyism in power and going at our expense, but so of course such “Progressive” politicians and their “Progressive” tax policies, etc, are, among other things, sending jobs away overseas, which is bad enough to be extremely maddening.

      However, there is something else which is equally maddening.

      What's equally maddening is when Conservatives or anybody who would claim to see and know better than to repeat, not to mention fall for, the "siren song" of the so-called "Progressive" Left making claims which are divorced from the real world, as such politicians, their bureaucrats, and their other accomplices do, and yet so-called "Conservatives", and others who claim to know what’s going on, take and repeat some of the same misinformation and misleading claims made by so-called “Progressive” politicians and others.

      For example: The so-called "Obama Recovery". What "recovery"? Just ask any of the employers who have gone out of business since Obama’s been in office, others who are trying to figure out how to stay in business, the legions of unemployed, and even retirees who are also trying to figure out how to keep going, but aren’t well-connected politicians or one of their corporate cronies who can afford, among other things, the lobbyists and tax attorneys, not to mention the “sweetheart deals “, exemptions, and “waivers”! What you will hear if you ask us, the people, is "There is no 'recovery', 'Obama' or otherwise! The economy is still in the pit, and there are still too many businesses and jobs which are still gone, and still disappearing, including overseas! There is no 'recovery'! And trying to use numbers to say otherwise still doesn't make a recovery for us, the people, who are in the real world here in the U.S!"

      That brings up another example: Using numbers as if to say there is a recovery", by any name, such as those put out by a so-called "Progressive" Leftist dominated government and media, is revealingly and tellingly so similar to how numbers and things are used, and even omitted, as a matter of government policy and procedure which is so very much an example of divorcing from reality and claiming things which aren't so. That is exactly how such things as "the cost of living" and the so-called "Obama Recovery" are both "officially" fabricated and claimed as they are…by leaving out major parts, such as excluding, as in leaving out, even any estimate of the number of people who have been unemployed for a long time, found it futile to try to get a job, and have given up.

      So it is that to even begin to approach anywhere about what the real unemployment rate is, double the number "officially" claimed and you will not only begin to approach what the number is in the real world but you will thus also stop repeating, if you ever have, and thus rightly leave the misleading misinformation to the so-called "Progressives" in government and elsewhere who must mislead and misinform or else be driven out of their positions of power and influence by us, the people, who would among other things stop our jobs being sent overseas by such “Progressive” politicians, their taxes, tax rates, and tax and other policies and practices.

    58. mike hutchings says:

      the u.s. is the center of the world economy…. as all roads lead from rome….all roads lead back…..trade flows out and trade flows back…..ambition flows out and ambition flows back….the tipping point is when productive work yields to nonproductive work….when greater productivity is not reinvested…but extracted starving the center…starving the heart….roads lead out and back and ambitions unsympathetic come with them….nations are not friends….industry is the heart of national power….not a money machine that produces nothing but government jobs to manage what is left…goverment extractive jobs out number manufacturing two to one now….perhaps the elites can wear toga's on the way to the forum….

    59. Hilda Moustakas Mont says:

      the new jobs were great and the lowering rate of unemployment is good…however, what about all those people that are no longer receiving unemployment benefits and have not found a job…seems like no one is counting them…so in essence that makes the figure way off

    60. Gene, Lake Stevens, says:

      I vote for a fair tax. Eliminate all political parties. Stop labeling ourselves as progressives, liberals or conservatives. We are supposed to be one nation. One people, even as diverse as we are. Keep religion out of government. No lobbyists. If it can't wear a uniform then it isn't allowed to vote. Meaning corporations have no right to expect to use our military might, our tax dollars and then send jobs overseas and expect us to buy their goods. With what money will we buy their goods? Fiat money? Go ahead, print me some up … make my day …

    61. Gene, Lake Stevens, says:

      According to Wikepdia on the 1980's recession (Google: 1980's recession) Pres. Reagan had to first raise the corporate tax to help pull us out of the recession before it was lowered. Here is what is posted on Wikepedia under the Political Fallout paragraph:

      The recession was nearly a year old before President Ronald Reagan stated on October 18, 1981, that the economy was in a "slight recession".[21]

      The "Reagan recession,"[22][23][24] coupled with budget cuts (which were enacted in 1981 but began to take effect in 1982), led many voters to believe that Reagan was insensitive to the needs of average citizens.[25][26][27] In January 1983, Reagan's popularity rating fell to 35%—approaching levels experienced by Richard Nixon and Jimmy Carter at their most unpopular.[28][29][30] Although his approval rating did not fall as low as Nixon's during the Watergate scandal, Reagan's reelection seemed unlikely.[31][32][33][34][35]

      Pressured to counteract the increased deficit caused by the recession, Reagan agreed to a corporate tax increase in 1982. However, he refused to raise income taxes or cut defense spending. The Tax Equity and Fiscal Responsibility Act of 1982 instituted a three-year, $100 billion tax hike—the largest tax increase since World War II.[36]

      The 1982 mid-term Congressional elections were largely viewed as a referendum on Reagan and his economic policies. The election results proved to be a setback for Reagan and the Republicans. The Democrats gained 26 House seats, which at the time was the most for the party in any election since the "Watergate year" of 1974.[37][38][39][40][41][42] However, the net balance of power in the Senate was unchanged.

    62. Gene, Lake Stevens, says:

      We ARE socialists. We have a military that serves our collective social needs. We have fire & police departments that serve our collective social needs. We have an administrative government that is supposed to serve our collective social needs. It's worked so far. We just need to put a stop to whomever and whatever is robbing our national treasury. Maybe it's us.

    63. Henry says:

      SO LET ME UNDERSTAND ABOUT CORPORATE WELFARE. GE, the one that pays zero taxes and does business with Iran. The same GE CEO that is now obamba's job czar.

      Tell me more about corporate taxes too high. Corporations are welfare states, they pay zero taxes. IT;S ALL ABOUT TAX LOOP HOLES FOR CORPORATIONS, BANKS, FARMS . THEIR MONEY IS HID IN THEIR CARIBBEAN BANKS.


    64. miker, medina says:

      Duh! And the incomes of 90% of all Americans have gone nowhere since the early days of Uncle Ronnie in the 80's while the top 2% have skyrocketed! You send the business overseas, the Ceos' and corporate exec's, must go with it! They have 90 days to make the move, after that, they lose their US citizenship.

    65. Jackson, Denton, TX says:

      All this and more from our out of control spending machine, aka the Government. A couple of years ago while considering a refi on our home we we approached Compass Bank, of which were members. They had recently changed theire moniker to BBVA Compass. When we checked them out, it seems that Banco Bilbao Vizcaya Argentaria (BBVA), a Spanish backed bank had bought out Compass USA for the sole purpose of acquiring BAILOUT MONEY from the Obama slush fund for which they would not have otherwise qualified as a foreign entity. This is just pure BS. We voted with our feet and canceled all affiliation with Compass.

    66. Trevor Rutherford says:

      One thing we can do is get rid of the penny and start a round up tax all general purchases consumer or business (after sales tax ect.). If a purchase ends in .05 or .00 then you would be charged an automatic .05 so there would be no way to avoid it. All tax generated would get dumped into Social Security in addition to what employEES pay in. Then we would terminate Social Security tax matching for businesses. One more reason to do business here, not there.

    67. Tim, Oregon says:

      No one deserves a tax break. This is why we are where we are now. Why aren't the prisons full of tax evaders?

    68. Chris says:

      So, basically, we should reward corporations for sending jobs overseas, in order to get them to come back? Why do you think they would do that? Even if we lowered corporate tax rates, they'd still have little incentive to come back to America where they'd have to pay American workers a living wage. Heritage seems to think that tax cuts are the answer to every problem.

      Corporations aren't just going to start hiring American workers if we're nice enough to them. They have to be made to do so. I like the idea of tax penalties against corporations who send jobs overseas. Corporations will always do what it cheapest for them. We have to make it so that exploiting workers in foreign countries isn't more beneficial to the bottom line than hiring American workers.

    Comments are subject to approval and moderation. We remind everyone that The Heritage Foundation promotes a civil society where ideas and debate flourish. Please be respectful of each other and the subjects of any criticism. While we may not always agree on policy, we should all agree that being appropriately informed is everyone's intention visiting this site. Profanity, lewdness, personal attacks, and other forms of incivility will not be tolerated. Please keep your thoughts brief and avoid ALL CAPS. While we respect your first amendment rights, we are obligated to our readers to maintain these standards. Thanks for joining the conversation.

    Big Government Is NOT the Answer

    Your tax dollars are being spent on programs that we really don't need.

    I Agree I Disagree ×

    Get Heritage In Your Inbox — FREE!

    Heritage Foundation e-mails keep you updated on the ongoing policy battles in Washington and around the country.