You are missing the point. The objective is to end outsourcing to trade competitors in the third world without imposing a a barrier to free trade (e.g. protective tariffs).Creating a new tax credit  would be an employer/principal's incentive  not a control.The employer is not required to take the credit, and is still free to outsource if he wishes. However, it may become more attractive for the employer/principal to terminate his outsourcing of work and/or jobs in order to take advantage of the tax credit. The choice is his to be freely exercised. Generally speaking American industry responds favorably to tax incentives.

I think you would agree that the current tax credits for adoptions, retirement savings, education, etc. do not impose any burden on the tax payer. On the contrary they are voluntary opportunities to reduce his tax liability. The same would be true of a new tax credit to end outsourcing of American jobs/work  to the third world. The employer/principal would not be obligated to take the credit. He could continue to outsource without any change in the operation of his business or his current tax liability, but he would be operating his business less efficiently and miss a savings on his taxes.

The credit would apply to employers/principals... not individuals (employees or independent contractors). It would not require the individual to do anything, and the work/jobs stay here in this country. It makes the American worker competitive with his counterparts in India, China and the Phillipines without requiring him to reduce his standard of living to the level of the third world.


The Federal Government is overlooking the problem of outsourcing when
it creates free trade zones (ie NAFTA). It needs to address the issue, and close the gap. The belief that the work exported to the third world would be limited to low paying subsistance level work is a myth. The data processing work being outsourced to India is far from subsistance level. The automotive industry is closing plants in North America because they are too expensive to operate... primarily because of the cost of labor and employee benefits packages. A major manufacturer of fire arms here in Connecticut has opened a plant in Mexico to produce fire arms less expensively.

I think the creation of free trade zones is a good idea if it is done responsibly. Consolidating a free trade zone in the emerging markets of the Pacific Rim and Latin America makes sense if the venture is completely and logically thought out in advance. The European Union has succeeded, and managed to overcome similar problems. It has grown to include most if not all of Europe. It will constitute a signicant trade competitor to America in years to come.

Tax credits are only one suggestion. There may be other solutions or combinations of solutions to end outsourcing to the third world.