Will Trump’s tax bill lead to more outsourcing?

Just under a year into his presidency, Donald Trump has passed his first piece of legislation with support from his party (we don’t count the immigration stuff because although the judges are allowing it, that’s just while the inquiry is ongoing so there’s no firm decision as yet).

It is of course the tax reform laws, and according to Common Dreams it’s incredibly good news if you’re either in favour of dynasties holding onto their wealth or…an outsourcer.

(We are not for a moment suggesting this is an unbiased source as it clearly has an agenda but we link to it as a discussion point).

The article itself isn’t all that substantial and it makes the claim about outsourcing – we’re guessing it takes outsourcing and offshoring to be interchangeable – without backing it up a great deal.

We ask ourselves, though, what the problem would be if the US were to invest in a lot of second-sourcing or even nearshoring? There are plenty of BPO businesses located in the poorer areas of the US before you even look overseas.

In fact our only reservation is that this is almost precisely the opposite of the stated intentions of president Trump. But then we thought those were pretty misguided anyway as outsourcing, done right and by all means in the longer term, tends to create rather than damage jobs.

This will be one to watch. If Common Dreams is right and this law contributes to, rather than diminishes, jobs moving overseas, the backlash could be huge.

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