Fire Foreign Workers; Hire Americans

Bill Tatro
|
Posted: Sep 16, 2011 12:01 AM

Now it’s time to pay for the U.S. Jobs Repatriation Act.  Oh, you haven’t heard of that new legislation? 

Well, it’s not exactly a White House, Congressional, or even a candidate proposal.  It comes directly from yours truly. 

In my previous two columns, I outlined how the elimination of tax loopholes could be achieved by implementing a 20% flat corporate tax. 

It would provide the advantage of lowering taxes for small businesses and raising taxes on the corporations who have avoided paying their fair share of tax for many years.  In addition, I stated that jobs don’t need to be created, they already exist. 

These existing jobs simply have the wrong workers occupying the positions, namely foreigners, not Americans.  Employers should not be asked to create additional jobs they don’t need, and we all know that no amount of bribery will make that happen. 

Therefore, the solution is for corporations to simply fire their foreign employees and replace them with American employees.  Now comes what some say is the hard part, but actually, it’s rather easy. 

Yes, I know that corporations hire foreign workers because it’s cost effective.  It’s not because of skill or work ethic, it’s just cheaper, so lets just eliminate that excuse. 

First, calculate the exact cost to the corporation per non-U.S. employee.  Next, develop a reasonable wage for a U.S. worker based upon the community in which the employee resides. 

At that point, the exact cost to repatriate the jobs will be known.  That cost per employee would then be credited against the dollars the corporations will pay under the new 20% flat tax. 

This makes the action of rehiring Americans cost-neutral. 

Here’s an example:  An American worker with an annual salary of $35,000 per year vs. a foreign worker with an annual salary of $5,000 per year = $30,000 x 10,000 workers = a $300,000,000 credit. 

As a result, the corporation walks away with the same cost.  The U.S. government, though losing corporate tax, would collect income tax from the American workers. 

More importantly, $350 million would be infused into the local economy, and the multiplier effect on other businesses would be truly enormous. 

Let me reiterate from my previous column.  Imagine 10,000 people being hired in the southern tier of New York, or the outskirts of Detroit, or the suburbs of Las Vegas.  Then, picture this being done by each and every corporation that currently hires overseas.  The financial impact would be absolutely astounding, not to mention the uprising of human spirit across local communities, states, and the nation at large. 

I urge you to write to your Congressional representative, call your Senator, or email the White House. 

Let’s pass the U.S. Jobs Repatriation Act or something like it immediately.         


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John Ransom Congress Likely to Cram Down Solyndra Billionaire
Political Calculations Gas Prices, the Unemployment Rate and Desperation
Mike Shedlock Hold on to Your Homes: Mortgage Default Notices Surge
Stewart Scott The Evolution of a Pakistani Militant Network
Bill Tatro Fire Foreign Workers; Hire Americans
Tony Marsh Obama Sends American Con Act to Congress
David Malpass Europe Tilting a Bit Positive
Jeff Carter Dems Aim to Tax Fund Business
Eric Singer Time for Republican Jujitsu on Social Security
Michael Vodicka Economy Down, Pawn Stocks Up - Investment Ideas
Sheraz Mian Inflation, Jobs & Manufacturing - Analyst Blog
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Email Ransom thfinance@mail.com
Twitter http://twitter.com/#!/bamransom