Multinational Corporations Hide Their Outsourcing Numbers from the Public
Some of the very same multinational corporations that are lobbying for a “tax holiday” in the name of job creation refuse to release data showing the number of U.S. employees compared to those employed overseas, according to a Washington Post report.
In fact, many multinational corporations provide that information to the U.S. Commerce Department with an agreement not to release it publicly.
“Outsourcing has become a lightning rod, and the media coverage they’re likely to get is unfavorable,” Scott Paul, executive director of the Alliance for American Manufacturing, told The Washington Post.
The Commerce Department releases only the aggregate number. From 2000 to 2009, multinational corporations have cut 2.9 million jobs in America while adding 2.4 million jobs overseas.
The companies that refuse to release the data include Proctor & Gamble, Hewlett- Packard, AT&T, Apple and Pfizer.
Some of those companies are advocating for a federal tax holiday that would allow them to repatriate overseas earnings at a one-time, discounted rate. They claim that it would allow them to pump nearly $1 trillion into the ailing economy, creating thousands of jobs in the process.
But the fact of the matter is that the experiment has been tried before, and failed miserably. In 2004, the Bush administration instituted a tax holiday. Companies brought back billions of dollars from overseas, but few jobs were created.
Ninety-two percent of the money that was repatriated was used for stock buybacks and dividend payments.
In fact, some research has shown that companies actually used some of their cash to move even more operations overseas. Some critics believe that it also led to more companies hoarding cash overseas in anticipation of another tax holiday.
Other companies on that list have CEO’s who have advised President Barack Obama on job creation.
“It’s an important piece of information that the American people should have,” Ron Hira, an associate professor of public policy at the Rochester Institute of Technology, told The Washington Post.
“Should you listen to the kind of advice these companies have about how to grow the economy when their record and their model indicates they’ve cut jobs? .?.?. Or should we talk to people who actually do create jobs in the United States?”