From the Desk of
Michael Blichasz
American Workers' Advocate
Host of the Saturday Variety Program at 11 A.M.
1540 AM Radio WNWR • Philadelphia, PA
Commentary from Saturday, April 2, 2011

Why Are There Loopholes For Outsourcing?

It was well reported in The New York Times and on many television newscasts, that General Electric Corporation will be paying no U.S. corporate taxes this year because of outsourcing and other strategies. This is not fair to American businesses who do not outsource around the world and continue to employ American workers and pay their taxes. They certainly have the right to complain and ask, "why are there tax loopholes for corporations that outsource?"

Tax loopholes make it possible for many major corporations to outsource manufacturing to their offshore division, then ship the products to the U.S.A., sell them to the American people, and report limited profits on sales in the U.S.A. This strategy is beneficial to corporations because the costs of manufacturing in foreign countries are low and tariffs on foreign products are minimal. In the process, GE avoids hiring American workers and paying U.S. taxes, but still depends on the American people to be their loyal customers. In the case of GE, at one time, 90% of their electrical products, including toasters, refrigerators, blenders, fans, light bulbs and dozens of other items, were all made in the U.S.A. Today, the amount of GE products made in the U.S.A. is low. That simply means the majority of GE and other brand name products in our stores are made overseas and the American people are mainly customers, not producers. Strategies like this are also discouraging new companies from investing in America and aggravating the plight of American workers.

As I stated in past commentaries, I think it would be a good idea to establish new businesses to manufacture every level of product we use in America. With this change imported products would have a competitive product on the American market and we can direct our purchase power to corporations employing all level of American workers so they will be successful.

I urge you to look closely at all labels to see where the items are made before you make your final purchase. As you shop around, consider the plight of America's workers and industries that could be operational in the U.S.A. if we supported what they produced. As you shop around, speak up in support of American made products and be sure to spend your dollars wisely.

This is Michael Blichasz. Email me you comments and suggestions from the email link on the front page of:
This is Michael Blichasz. Email me your comments and suggestions from the front page of my Internet site: