40% Of US Tech Executives Support Offshoring Tax

by Leroy Baker, for LawAndTax-News.com, New York

06 May 2004

According to the results of a poll recently conducted by CNET News in conjunction with Harris Interactive, some 40% of US technology executives support the idea of an "offshoring tax" to compensate for the overseas outsourcing of jobs undertaken by their companies.

The survey of almost 500 key technology executives took place in late April, and its results have surprised observers, especially given that one of the main reasons given by companies for the outsourcing of jobs is to cut costs.

Speaking to CNET following publication of the results, New York University economist, William Baumol suggested that the high level of support for the concept of an offshoring tax may demonstrate a new sensitivity with regard to the practice in the current political and economic climate.

"Even the most ardent supporters of globalization realise that it can be extremely hard on the people who have to move or lose their jobs. If globalization makes the country richer, then certainly, we can afford to do something for the people who are hurt by it," he observed.

The survey also found that the majority of companies (54%) believe that within the high tech sector, outsourcing has become a permanent fixture. However, 63% of those questioned suggested that this poses a threat to the United States' strong position in the technology market.

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