Let’s catch those lost Tax Revenues from the Outsourcers!!
It seems that the new culture in the IT Industry is to either Outsource the IT department to an Offshore location or to create a Captive Satellite IT Department in an Offshore Country (i.e. India). Many of the big time IT Consulting and IT Service companies are leaders in the transferring and OffShoring of IT Jobs. They’re doing this to make a few extra pennies per share for their shareholders who reside all around the globe. Corporate America is no longer Corporate America.
So, back home what happens is that IT Jobs are lost and hourly rates / salaries are cut. The Larger IT Consulting Organizations control the flow of work…..which in many cases ends up in an Offshore location. For the Jobs that are Offshored, the employers have cut out the cost of their Payroll Taxes (i.e. Federal, State, FICA, Medicare), but still have their Operations in the USA supported from the Offshore location. The elimination for the Payroll Taxes in USA is the “core cut in cost” that the Outsourcers are profiting on and the incentive to continue to Offshore as many jobs as they can. To me this is called “Tax Evasion”.
Yes folks, we’re dealing with big time “Tax Evasion”. If you’re working Physically in New York City or Chicago, you will pay from your earnings, Federal, State, FICA, Medicare, State Disability and unemployment taxes. In some case you will also owe a local City tax (i.e. NYC). Now with OffShoring, you can cut those jobs in USA, eliminating the earning and taxes paid in the USA, but still have your USA based Operations supported from an Offshore location.
We must find a way to stop this “Tax Evasion” now and bring back equity in out Job IT market!
I believe one way to fight this dilemma of OffShoring jobs and Tax Evasion is to bypass these Larger IT Consulting firms (…..who are the largest Outsourcer and Architects of the OffShoring of IT Jobs……) and deal directly with the “end clients”. By doing this, we can cut out the Larger IT Consulting firm’s high overhead / profit margin that is factored in their exorbitant hourly billing rate to the end clients, thus cutting cost to the “end client”. By doing this, we will not only keep our jobs in the USA, but also leave room for increases in the salaries / hourly rates to the IT Consultant and of course, have all those tax obligations paid here…in the USA.
It’s every American’s right to complain about paying their Tax obligations, but it’s Un-American to not pay your taxes. Just remember this, Corporate America is no longer Corporate America….the day has come where we can no longer support “Tax Exemptions” for workers who work outside the USA to support Operations in Hometown…USA!
If you wish to voice your opinion, you are welcome in commenting to this post. If you wish to voice your opinion to a greater authority….Congress and/or your State Representatives, please go to the Peningo Advocacy Assistance Page.