This post was updated on November 1, 2012.
The U.S. economy is on its way back, having added 5.2 million private sector jobs in the last 31 months. But much more needs to be done. President Obama and Mitt Romney have two very different visions of how to help create American jobs: While the President is aggressively pursuing insourcing policies that encourage companies to invest and create jobs in the U.S., Romney continues to support tax policies that encourage companies to outsource and offshore American jobs.
A closer look at President Obama’s and Romney’s records reveals the stark difference in their priorities when it comes to creating and keeping jobs here at home.
“It is time to stop rewarding businesses that ship jobs overseas, and start rewarding companies that create jobs right here in America.”—President Obama
Supports closing corporate loopholes and ending tax breaks to companies that ship jobs overseas, and instead would reward companies that create more jobs here at home with a tax credit for bringing jobs back to the US. The President would create a more level playing field for American businesses by creating an minimum tax on foreign profits that would reduce incentives to move overseas.
Has taken action to protect American workers by enforcing trade agreements to address unfair trade practices. The President created a Trade Enforcement Unit to aggressively investigate any unfair trade practices taking place anywhere in the world. The administration has brought more trade cases against China in one term than the last administration did in two.
Supported tax credits that encourage companies to create jobs in the U.S., including creating new tax credits for clean energy that go only to projects built in the United States. President Obama also passed tax cuts last year to allow businesses to immediately write off new investments—giving them an incentive to buy new plants and equipment. President Obama has proposed to extend this tax cut, along with providing new tax cuts for small businesses that add workers.
“Outsourcing is good for America”—Romney’s chief economic adviser, R. Glenn Hubbard
Supports a territorial tax system that would allow multinational companies investing overseas to avoid paying U.S. taxes, which critics say “would prompt U.S. to shift offshore even more income than they already do.” Economist Kim Clausing, an expert in international taxation, estimated that Romney’s plan to eliminate these taxes could lead to the creation of 800,000 jobs overseas.
Vetoed a bill as governor that would’ve prevented Massachusetts from sending state jobs overseas, and signed a contract that included a call center in India.
Invested, as a corporate buyout specialist, in companies “that were pioneers in the practice of shipping work from the United States to overseas call centers and factories” to countries including China and India.
Romney attacked the President’s corporate tax plan—which included remove tax breaks for companies that move production overseas—claiming the plan would “kill jobs.”
Click here for more on how President Obama is doing what Mitt Romney won’t: creating and keeping jobs in America.