Payroll taxes are but one component that led to 'offshoring'. In California and New York, 60 cents of every dollar earned goes to some sort of tax at the local, state & federal level. Add to that the cost of labor including workman's comp, and onerous regulations and you'll get the picture. During the years 2000 through 2008, there were more crippling regulations enacted than all previous presidents combined, and between 2008 and 2012, regulations enacted, were doubled again (George Mason University study). The result of taxes and regulations were (for the first time in our history), were more business failures than startups (back to back to back to back), and you can source this info through the gov't BLS database. The Hudson Institute conducted a study to show that actual 'start-ups' are declining, so what does this mean ? Looks to me like a systematic effort by the BIG GOV'T / BIG BUSINESS believers, to kill the middle class in favor of those that are willing to pay bribes (oops, I mean campaign contributions). Moving your manufacturing offshore, unfortunately, may be the only means to survival.