Asian Window

A Reuters report from Bangalore:

U.S. plans to scrap tax incentives that encourage American firms to ship jobs overseas are unlikely to dent business for Indian outsourcers, but the move is protectionist, company officials and lobby groups said.

The proposal, if implemented, will hurt more U.S.-based companies that have significant operations overseas, including in India, they said on Tuesday.

U.S. President Barack Obama plans to tighten rules allowing companies to defer paying taxes on profits made overseas as long as those earnings are ploughed back into the foreign subsidiaries, he said on Monday.

Supporters of the tax reform plan say the existing provision allows U.S. companies to avoid taxation indefinitely and gives them incentives to create jobs overseas instead of at home.

More:

Similar Posts:

• IBM to cut U.S. jobs, expand in India
• Never mind the rhetoric, outsourcing will not stop
• Recession trickles to India
• Indian outsourcers hiring more Americans
• Barack Obama on India and Pakistan