“Why Tax Breaks Won’t Stop High-Tech, H-1B Human Trafficking” is the current column, now on WND.com. An excerpt:
“If the tax reform bill goes through, do you plan to increase your company’s capital investment?”
The question was posed to a sizeable group of CEOs at The Wall Street Journal’s CEO Council, in the presence of White House economic adviser Gary Cohn.
A pitiful show of hands failed to wipe the smirk off Mr. Cohn’s face. But at least the knaves were candid. Tax cuts for American big businesses are unlikely to move corporations to deploy that capital to raise the wages of the little guy, the worker.
The repatriation deal planned for fat-cat multinationals is particularly sweet. But don’t expect the “one-time tax rate of 12 percent on cash returns and five percent on non-cash for corporate money repatriated from overseas” to spur investment in the U.S.
Ideally, policymakers would prefer, as Business Insider quips, for companies to “reinvest in their core businesses, as this holds the most direct bearing on economic expansion.” All the president’s men certainly preach it.
But President Trump’s plan to grant the multinationals, tech titans included, a tax holiday, is more likely to see capital used to tinker with share prices. Repurchasing shares, a share buyback, will boost stock prices and benefit large shareholders.
Where a multinational also traffics in human labor, globally—as do the likes of Apple, Cisco, Microsoft, Oracle, Qualcomm, etc.—a lower tax rate on their repatriated earnings is unlikely to redound to American computer programmers and engineers.
In the event these tax holidays encourage American high-tech to “reinvest in their core businesses”—it will not be an investment in employing American talent, which will continue to be replaced apace with foreign workers.
For accretion in employment among Americans to occur, the president would have to turn off the H-1B (and other visa) spigots. He has not.
Multinationals consider the world their labor market. High-tech traitors will continue to replace the worker bees of American STEM—science, technology, engineering and mathematics—with reliably mediocre, culturally aggressive, foreign workers.
And not necessarily because foreign workers are cheaper. Importing workers from India calls for enormous in-house bureaucracies to handle immigration applications and renewals, attendant litigation, and family importation and resettlement packages for tribes of new arrivals (also known as chain migrants). This isn’t necessarily cheaper than employing your local lass or lad.
The H-1B visa racket is, however, a taxpayer-subsidized, grant of government privilege. Duly, profits remain private property. The costs of accommodating an annual human influx are socialized, borne by the bewildered community. …
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