Tuesday, April 12, 2011

Why US Companies Offshore Work

We've maintained for a long, long, time that the cost of taxes AND regulations in the US lie behind a great deal of "offshoring." Yes, "union labor" is a factor--but it's simply myopic to ignore Gummint-imposed costs.

Got it? Good. Now, class, remember that I said "Taxes" are part of the problem? So when US trucking companies (and truck drivers) pay taxes, what are they paying for?


...The Mexican trucks enter the U.S. under a 17-year-old international trade pact known as the North American Free Trade Agreement (NAFTA) and they’ve created an air pollution crisis...Since the Mexican truckers have no intention of fixing the problem, Uncle Sam has stepped in to save the environment. U.S. taxpayers have picked up the cost to replace old mufflers on dozens of trucks and many more are scheduled to be upgraded by the middle of this year.

Those aren't just "mufflers." They are catalytic converters. Ever price one of those for your car?

Nice. Trucking companies and Teamsters pay for improvements to their competitors' trucks--so their competitors can put them out of business.

What a Country!!

HT: Gateway

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