Romney Jobs Creation

Kimberly A. Clausing is a professor of economics at Reed College. She recently wrote about “territorial corporate-tax system” meaning the effort to exempt American corporations from taxes on their foreign income.

President Obama has read her proposal and used it to poke fun and Mitt Romney’s job plan. Exempting taxes for foreign income in Clausing’s study would in effect create 800,000 jobs; but those jobs would be created in other countries not our own.

Obviously Professor Clausing thinks the idea of exempting American Corporation of taxes created by foreign operations is a bad idea. “U.S. tax payments for the income from foreign operations of U.S. multinational corporations would not simply be deferred; they would be completely erased,” she writes. “That would eliminate constraints on shifting income abroad.”

Romney folk complain that her report is partisan in that she has donated to Obama, an idea she rejects. She points out that she has been doing her work for 20 years and is widely published in respected economic journals. She just seeks to be honest in her work without political aim. She makes a great analogy: “ That said, some say the truth has a partisan bias. Some facts just happen to line up with one party more than the other. For instance, most scientists believe in climate change, but that does not mean they are partisan.

Her arguments just make sense to me. They make a lot more sense in continuing to promote trickle down/supply side economics when we have well seen that have not worked in the last 35 years.