Concerned with Obama's Bangalore to Buffalo call: NASSCOM
Published on Tue, May 05, 2009 at 11:24 | Source : CNBC-TV18
Updated at Fri, May 08, 2009 at 15:17
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Concerned with Obama's Bangalore to Buffalo call: NASSCOM
US President Barack Obama has targeted outsourcing once again in his attempt to bring back the ailing US economy on track. Meeting one of his major election promises, Obama yesterday announced the end to years of tax incentives to the US companies which create jobs overseas.
US President Barack Obama has targeted outsourcing once again in his attempt to bring back the ailing US economy on track and the clouds seem to be getting darker for Indian IT companies.
Nasscom says that this is a legitimate concern and they are indeed hoping that such moves do not get pushed through and that free trade is allowed and that the US government realises how important it is for that.
Meeting one of his major election promises, Obama yesterday announced the end to years of tax incentives to the US companies, which create jobs overseas.
He said the White House plan would save taxpayers USD 210 billion over the next decade."It's a tax code that says you should pay lower taxes if you create a job in Bangalore, than if you create one in Buffalo, New York."
Incentives would, instead, be given to those creating jobs and enhancing competitiveness in the US. The end of tax incentives for outsourcing would have a huge impact on the Indian economy, where US companies have been outsourcing their work.
