American tech-firms fight Obama's H1-B visa stance
Bangalore: U.S. President Barack Obama's 'Say no to Bangalore, yes to Buffalo' rhetoric, which has gained strong ground after the introduction of the Durbin-Grassley's anti H-1B visa bill, has failed to accrue support of the American companies. Many of the U.S. firms have jointly, launched a campaign against the newly proposed law as it would lead to a job loss of as many as 2.2 million Americans.
The Technology CEO Council, a Washington-based advocacy group of U.S. American tech-companies, in its protest has released a report that reveals the affects of the new policy of Obama administration to end 'tax breaks'. The new law that ends tax incentives to those firms which create jobs overseas, would also lead to a decline in investments in the U.S. plants, equipment and property by as much as $84.2 billion. Repealing or sharply limiting deferral would not generate large tax revenues, since substantial job losses, wage cuts and lower investments would reduce tax revenues, the report said. The report commissioned by the council has been authored by Robert J Shapiro, a former Clinton administration economic official, and Aparna Mathur, a Research Fellow at the American Enterprise Institute.
As per the new law, the tax incentives would now go to those creating jobs inside the United States, in places like Buffalo city, bordering Canada in upstate New York. "We will stop letting American companies that create jobs overseas take deductions on their expenses when they do not pay any American taxes on their profits," Obama said.