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A territorial tax system would endanger the budget while rewarding companies for offshoring jobs and investments.
Of the ten leading cities for offshoring, according to "The Handbook of Global Outsourcing and Offshoring", six are Indian.
A territorial system would be an even bigger giveaway, endangering the budget while rewarding companies for offshoring jobs and investments.
On the one hand, pure price competition can't continue for long; rising demand for services in the primary destinations for offshoring companies has lead to rapid wage convergence.
The OECD looked at the value of exports of business services as a proxy for offshoring in 1995-2002, and found that growth was greatest in India.
He criticized corporations for offshoring jobs, attacked financial-industry executives for avoiding taxes and bemoaned America's reliance on economic bubbles over the last few decades.
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