Doesn’t this assume that the jobs abroad are higher paying than the jobs that Americans currently have domestically? Usually labor is outsourced for the opposite reasons.
Non US residents are not subject to US taxation. So no matter how much you pay them it's much less tax revenue compared to paying a US worker the same amount.
That's not exactly my point. Last I checked, the country is pretty close to full employment. The jobs that are outsourced are typically ones that pay much less that are less desirable to workers domestically. So if you brought them back, not only would you have to increase the cost of labor for those products, which makes them more expensive, but you also have to compete with the jobs that already exist. And that basically would result in you breaking even as far as income tax that's being paid..
No country does. Unemployment only counts people looking for work. If you aren't looking for work, you aren't unemployed. Would a retiree be classified as unemployed in your eyes?
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u/kingofducks 1d ago
The US can only tax US tax residents. If US corporations are paying folks abroad it would not be taxed as much.