Offshoring tax: the Democrats weigh in

Think Donald Trump and his party are the only group in the US who are opposed to the offshoring of jobs? Think again. The Democrats are making their move to protect American jobs, with Sen. Chuck Schumer (pictured) announcing a new set of “punishments” (according to CNBC) for businesses sending jobs elsewhere.

The minority Democrats are also pushing for a jobs security council to be established. This would look into foreign companies looking to buy up American businesses and shut jobs down and prevent them doing so.

Precedents aren’t great

The full story and quotes from the prime movers are on the link above. In principle the idea of protecting jobs is of course appealing; in real life it’s not so straightforward. Seven years ago American company Kraft bought British chocolate giant Cadbury’s on the understanding with the UK government that it would keep jobs and factories open; it broke the promise within a week and although it made conciliatory noises the jobs were lost. Whether it would be the same or similar in the case of outsiders to the US talking to American government bodies is at this stage an open question.

There’s also the rationale behind the moves. Pre-Trump, although the job issue was important it didn’t seem to be uppermost in the “establishment”‘s mind. Now we get this from the Democrats.

It’s been easy for commentators to sneer at Donald Trump for his inability to push healthcare reforms through and for this week’s (admittedly hilarious) dismissal of communications director Anthony Scaramucci after only ten days. However, this new move suggests the centre of debate is moving towards at least one of his objectives. If his game plan were actually to move the whole debate and never mind whether he makes any friends in the process, he could well be succeeding.

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