Bring outsourced jobs back to US:Obama Launches re-election

US President Barack Obama on Tuesday night urged American business leaders to bring outsourced jobs back to the US and said companies that send jobs overseas should not get a tax break.

My message is simple. Its time to stop rewarding businesses that ship jobs overseas, and start rewarding companies that create jobs right here in America, Obama said in his State of the Union Address to a joint session of the US Congress. Send me these tax reforms, and Ill sign them right away, he added.

Obama noted that at present companies get tax breaks for moving jobs and profits overseas, while companies that choose to stay in America get hit with one of the highest tax rates in the world. It makes no sense, and everyone knows it, he said.

India has been one of the major destinations of outsourced jobs as US companies seek to cut costs and increase profits. Obama said no American company should be able to avoid paying its fair share of taxes by moving jobs and profits overseas.

From now on, every multinational company should have to pay a basic minimum tax. And every penny should go towards lowering taxes for companies that choose to stay here and hire here, he said.

A major part of Obamas third State of the Union Address was focused on the economy and aimed at Americans who will vote in the presidential election in November. The Republican Party is in the process of picking its nominee to challenge Obama.

He laid out a blueprint for an economy thats built to last - an economy built on American manufacturing, American energy, skills for American workers, and a renewal of American values.

Obama pointed out that he inherited a broken economy when he took office in 2009, but that in the last 22 months, businesses have created more than three million jobs. He pointed out that the U.S. auto industry, which was in the doldrums when he took office, had been revived on his watch.

Obama took a swipe at members of the Congress citing a culture of bitter partisanship. Most Americans believe Washington is broken, he said, and the divide between the US capital and the rest of the country seems to get worse every year. He didnt spare the executive branch, accusing it of being inefficient, outdated and remote.

Obama said his most immediate priority is to stop a tax increase on 160 million Americans and called for an end to tax cuts for the wealthiest of Americans.

He touched on his administrations foreign policy and national security successes-the withdrawal of all US troops from Iraq, the killing of Al-Qaida leader Osama bin Laden in Pakistan, the slowed momentum of the Taliban and the start of a US withdrawal from Afghanistan.

Ending the Iraq war has allowed us to strike decisive blows against our enemies, he said. From Pakistan to Yemen, the Al-Qaida operatives who remain are scrambling, knowing that they cant escape the reach of the United States of America.

In a remark that won him a loud standing ovation from Democratic and Republican lawmakers, Obama denied that the U.S. is on the decline. Anyone who tells you otherwise, anyone who tells you that America is in decline or that our influence has waned, doesnt know what theyre talking about, he said.

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[size=150]India Inc to Obama: We are creating jobs in US, Europe[/size]


[size=85]Azim Premji said the issue of outsourcing is “getting hyped up since elections are coming up… The US has become over-sensitive on jobs”.
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PTI | Jan 26, 2012, 08.10PM IST

DAVOS: With HCL Technologies announcing 10,000 jobs for locals in the US and Europe, India Inc on Thursday chose the WEF meet to send a strong message that Indian IT firms are creating and not stealing jobs in troubled western economies.

Also, a message emerged from British Prime Minister David Cameron’s advice to the European Union (EU) that instead of being a threat, the emerging economies like India can be of great help to Europe.

Concluding a Free Trade Agreement(FTA) with India by the year-end would be in Europe’s interest, he said.

“We need to have a check-list to tackle the euro crisis… There has to be FTAs, bilateral trade agreements and EU trade agreements with countries like India and Singapore, among others by the end of the year,” he said.

His plain-speak to Brussels (EU headquarters) comes against delay in trade-opening pact with India.

Barely a day after President Barack Obama hit out against outsourcing, HCL Technologies’ Vice Chairman Vineet Nayar made a major announcement here that his company would create 10,000 locals jobs in the US and Europe in the next five years.

“Companies in today’s world of globalisation need to create jobs wherever they go. We have taken a pioneering step…”, he said.

Wipro chief Azim Premji, known for his frank talk, said the issue of outsourcing is “getting hyped up since elections are coming up… The US has become over-sensitive on jobs”.

Chairman of Mahindra Satyam Vineet Nayyar hinted at creating jobs in the western economies from where they get bulk of business. “Indian firms when they go overseas, will have to create jobs there. We will certainly do so,” he said.

German Chancellor Angela Merkel also wanted investment in Europe to create employment.

Obama in his State of the Union address had hit out at outsourcing.

“No American company should be able to avoid paying its fair share of taxes by moving jobs and profits overseas. From now on, every multinational company should have to pay a basic minimum tax. And every penny should go towards lowering taxes for companies that choose to stay here and hire here,” he had said.

Amid economic uncertainties and rising unemployment in the western world, the focus is on generation of jobs.

On Wednesday, Citigroup chief Vikram Pandit had said that job-creation was the single biggest issue, both in developed and developing markets.

According to him, 400 million new jobs could be needed to be generated in next 10 years.

Indian IT industry, which rakes in about USD 60 billion revenues from overseas markets, depends significantly on outsourcing of business processes of the Western companies.

Painting a pessimistic outlook, the International Labour Organisation earlier this week had said that urgent attention is needed to create 600 million new jobs in the next 10 years.

“Despite strenuous government efforts, the jobs crisis continues unabated, with one in three workers worldwide, or an estimated 1.1 billion people, either unemployed or living in poverty,” ILO said.

source: http://timesofindia.indiatimes.com/busi … 641466.cms