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Kerry Campaign Uses Valley for Backdrop on Job Losses
YOUNGSTOWN, Ohio -- As John Kerry was heading to Austintown Fitch High School at noontime Sunday, his campaign was releasing a blistering indictment of the Bush Administration's job creation record. The campaign release, published with a Mahoning Valley dateline, cited recent studies that show U.S. companies are sheltering profits and shipping jobs overseas to avoid paying U.S. taxes at a record rate.Kerry touched down at the Youngstown-Regional Airport shortly before noon for a town hall meeting in Austintown on the economy and jobs. Recognizing the 30 years of manufacturing job losses that the Mahoning Valley is still struggling to overcome, theDemocratic presidential nominee pledged to do what he said George Bush has not -- crack down on corporate loopholes to save U.S. jobs and taxpayer money. "With our economy dragging and costs going through the roof, George W. Bush has done nothing to create jobs," Kerry said. "In fact, the only plan he's come up with is one that actually makes things worse. Because of George Bush's bad choices, every year Americans are getting robbed of at least $40 billion in taxes we're owed." Recent studies by the journal Tax Notes document that companies are sheltering profits and shipping jobs overseas at record rates to avoid paying taxes, according to the campaign release. Profits sheltered by U.S. companies in tax havens have jumped 69% under Bush and cost U.S. taxpayers at least $40 billion, stated the release. Through loopholes like this, 45% of large companies have been able to pay no taxes at all in recent years."The real test of leadership is how you respond if things go wrong," Kerry said. "Do you face the facts and fix the problems? Or do you stick with your story and ignore reality? Time and time again, George Bush has proven that he's stubborn, out of touch, and unwilling to change course." Kerry set forth a three-part plan to crack down on companies that outsource jobs and offshore their profits to avoid paying taxes. If elected, his administration would establish a new office of offshore tax enforcement at the U.S Treasury Department to investigate offshore corporate tax avoidance and help develop new regulations, he said. Tax loopholes would be closed such as the Bermuda tax loophole that allows companies to escape taxes by taking advantage of complicated international tax rules. Special tax breaks would be eliminated so that companies are taxed the same whether they invest abroad or at home. The Kerry campaign estimated these changes would generate an additional $12 billion in tax revenue annually that would be used for incentives to create jobs in America, including cutting corporate taxes by 5% -- a tax cut for 99% of taxpaying companies. Moreover, the campaign said, it is likely that substantially more money would be raised, ensuring billions of additional dollars to reduce the budget deficit."