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Business Outsourcing Labor Criticism Issues

Many people believe business outsourcing to companies outside of the United States is not right and we should hire our own citizens. Many of the accusations are regarding keeping the money in the U.S., dodging taxes, and more. When a company uses business outsourcing for their project needs, customer or technical support, or call centers they are saving a lot of money they would normally have to pay to the government in Federal taxes.

Businesses commonly have to pay a double tax. Corporations are taxed on an extremely high level income tax rate. When a company uses a business outsourcing company then they don't have to pay the taxes to the United States. In addition, they are able to pay a much lower wage to people who are willing to accept whatever they can get. This can save a business millions of dollars in a year.

Another major criticism is that American companies need to keep the money in the United States. They need to create the jobs for Americans and Americans need the money. The money and the jobs should stay in the U.S. and this would be supporting the local economy. Many people believe this argument to be true but the money savings is the biggest benefit.

Sarbanes-Oxley has also forced companies to flee out of the jurisdiction of the United States so they do not have to be compliant. Many people complain about companies outsourcing their employees and giving jobs to people outside of the United States. However, businesses benefit much more because of the high taxes that occur on businesses and the strict policies toward businesses.

Business Outsourcing Labor Criticism Issues News