John Kerry: Will His Budget Reform Plan Work?

In recent weeks, President hopeful John Kerry has released his economic and employment reform strategy that outlines what he will try to achieve once elected to office. This comprehensive 8-page plan he is calling “The most sweeping international tax reform in over four decades,” and is centered around the main idea of creating 10 million jobs here in America. But is his plan really a working strategy? In order to formulate an accurate answer, lets take a look at the plan and analyze it.

The tax plan first calls for an elimination of corporate tax breaks that will spur growing numbers of companies from shipping American jobs overseas. He also plans to lower corporate taxes by 5%, which I am guessing is a way to balance, to a certain extent, the tax breaks being given out to large companies and corporations as a way to being our jobs back to America.

Kerry’s economic tax reform plan also noted loopholes in international taxes that allow companies to make more money overseas without having to legally pay U.S. income taxes. Such loopholes include the ability to defer taxes. It is stated that corporations need not pay active foreign income tax until it brings any money it has out of the country into the U.S. Kerry ads that “if they keep money abroad, they can avoid paying U.S. tax entirely,” which is absolutely true. This in turn provides incentive for companies to keep re-investing their money abroad, and not to bring the contribute investment and growth to the American economy. Personally, I don’t believe that trying to put our efforts into lowering taxes for corporations will bring a significant amount of jobs back to the states. What he and all other politicians fail to grasp is the fact that corporations don’t want to decrease revenue. Moving jobs back to America does just that because they would have to pay their employees nearly 100 times as mush as they would if they continued to send jobs overseas to countries like India, Taiwan, and Mexico. There is no competing with that. All corporations are concerned with is getting more and more money at the expense of the American people and the American economy. They are practically destroying the American economy, which will, in the long run, destroy this nation totally.

There is a serious imbalance present in the US. As jobs leave the U.S., more and more immigrants are moving into America both legally and illegally. Kerry’s economic tax reform plan fails to produce alternatives to fight this. It is more based on the assumption that corporations would want to move jobs back to the U.S. just because they are getting a few tax breaks and making it a little harder to keep money abroad without paying taxes on it.

In retrospect, the tax reform plan is ambitious, and offers many tax breaks, tax cuts, and introduces a couple of temporary taxes that will benefit corporations and small businesses in addition to manufacturing employees. On that note, it seems that Kerry plans to try to jumpstart the economy with the manufacturing industry as he has taken a keen interest in the industry and its workers. He promises to increase U.S. productivity while creating more jobs for the manufacturing industry. He seems to be biased towards that industry, and it is apparent as he is neglecting other industries as well as currently employed Americans that would also help jumpstart the economy. His plan calls for more tax cuts, but were tax cutting the hell out of the national budget. It will create an even deeper deficit, one in which our next generation of children will be working to pay off in the next half century for years.