Tag: new york post

The Bogus Charge of ‘Shipping Jobs Overseas’

In the final push before Election Day, President Obama has been traveling the country criticizing Republicans for favoring tax breaks for U.S. companies that supposedly ship U.S. jobs overseas. It’s a bogus charge that I dismantle in an op-ed in this morning’s New York Post:

The charge sounds logical: Under the US corporate tax code, US-based companies aren’t taxed on profits that their affiliates abroad earn until those profits are returned here. Supposedly, this “tax break” gives firms an incentive to create jobs overseas rather than at home, so any candidate who doesn’t want to impose higher taxes on those foreign operations is guilty of “shipping jobs overseas.”

In fact, American companies have quite valid reasons beyond any tax advantage to establish overseas affiliates: That’s how they reach foreign customers with US-branded goods and services.

Those affiliates allow US companies to sell services that can only be delivered where the customer lives (such as fast food and retail) or to customize their products, such as automobiles, to better reflect the taste of customers in foreign markets.

I go on to point out that close to 90 percent of what U.S.-owned affiliates produce abroad is sold abroad; that those foreign affiliates are now the primary way U.S. companies reach global consumers with U.S.-branded goods and services; and that the more jobs they create in their affiliates abroad, the more they create in their parent operations in the United States. If Congress raises taxes on those foreign operations, it will only force U.S. companies to cede market share to their German and Japanese (and French and Korean) competitors.

I unpack the issue at greater length in a Free Trade Bulletin published last year, and on pages 99-104 of my recent Cato book, Mad about Trade: Why Main Street America Should Embrace Globalization.

Our Inescapable President

I’m late to the pile-on because I’m a bad American, and I don’t watch enough football, but not quite two weeks ago, President Obama managed to politicize what for many is a hallowed Monday night ritual.

In the New York Post, the paper of record for those of us who grew up in one of the only red counties on the Jersey Shore, Kyle Smith notes that Obama’s ostensible purpose for inserting himself into Monday Night Football was to proclaim Hispanic Heritage Month, but the president put this in as well:

Our nation faces extraordinary challenges right now, and our ability to tackle them will depend on our willingness to recognize that we’re all in this together, that we each have an obligation to give back to our communities, and we all have a stake in the future of this country.

Generic enough, perhaps, unless you’re oblivious to the political backdrop of the president and his party pushing desperately to pass national health care.

Smith is rightfully exasperated by the perpetual campaign mode and Obama’s omnipresence in every broadcast medium. But–not that it’s a competition–I’d had more than my fill of this sort of thing eight months ago, a month into Obama’s presidency:

When there’s no escape from our national talk-show host-when he appears constantly above every gym treadmill-is it any wonder that we typically want his show cancelled just a few seasons in? Is it any wonder we get sick of him?

You can make too much of the notion of presidential “dignity.” It’s good when the federal chief executive officer fights against the royal aura that inevitably surrounds the office by, for example, walking his inaugural parade route (Jefferson) or buttering his own english muffins (Jerry Ford).

But it seems to me that doing a commercial for George Lopez’s lousy sit-com takes it a bit too far:

(When I saw this on TV recently, I was sure it was some kind of Forrest Gump cinemagic. Not so.)

More to the point, can the president give us an occasional break from his relentless omnipresence? Apparently not.

Six months into his presidency, the Politico reported, Obama had already “uttered more than half a million words in public.” In one whirlwind week last month, the president made his third appearance on “60 Minutes,” gave a major speech on the financial crisis the next day, and made a record five talk-show appearances the following Sunday. And on the eighth day, He did Letterman.

My suspicion is that as his popularity continues to drop, Obama is going to discover that there are diminishing returns to presidential media appearances, and that he might do better by letting the country forget about him for a while. But will he be able to restrain himself?