Earlier quoted context omitted.
It’s true that American companies have benefited from sending jobs overseas. Instead of trying to stop them, perhaps we could explore ways to share this money more fairly across the country.
Everyone in business seems allergic to "pay domestic workers living wages and provide flexible working arrangements with good work life balance" so we will only arrive there through politics, unions, and structural labor shortages as the prime working age population cohort continues to shrink, imho. Honorable mention to Senator Bernie Moreno of Ohio for introducing legislation to tax outsource payment flows. The HIRE…
I think its because I suppose we can either talk about small businesses who can be very cost cutting because their overall profits are very thin (you really can't blame them that much I think)
And the medium to large corporations either take Venture funding and want to cost cut to show more growth or maximizing share holder profit
https://en.wikipedia.org/wiki/Dodge_v._Ford_Motor_Co.
(taking an short summary from ddg AI)
The case you're referring to is Dodge v. Ford Motor Co., decided in 1919, where the Michigan Supreme Court ruled that a corporation must operate primarily for the profit of its shareholders, rather than for the benefit of employees or customers. This case is often cited as a foundational example of "shareholder primacy" in corporate law.
This is the root cause of the issue.
Do you know that there is a solution to it
They are called social enterprises and there are legal frameworks to do that. You might've seen some labels given by independent parties to show that as well
So they exist, but nobody creates them, why?
Because, its insanely hard to raise funding in them compared to the average structure. I looked up into it and the system of funding is just created such way where it rewards any and every cost cutting
I think that just like non profits get good value from doing good. A middle way where a company's purpose becomes some aspect of social good and not entirely profits. This might help but we need govts supporting them (similar to perhaps even non profits)
I have a hypothesis that if you provide easy access to lower interest loans with less collateral overall (perhaps even none?, provide micro-grants perhaps) at a federal level/banking level might be the best way to really start up some new innovation whose idea is social mission
Most people have an idea of enough, I think that academically inclined people who create companies would really appreciate this and this could even include the creation of things like google etc. which really just turned evil from dont be evil because of the wiki link/case that happened imo
Taxation as you say in the 25% tax won't really work that well imo as we saw recently in the tax scandal recently in America where billions were lost.
Although so much of US especially its politics is so much lobbied etc. that I find the idea of this change just stopping because it could prove a real threat to the completely capitalist corporations which will fire 1000's of people in an instant
Also whenever you position something as tax, the capitalist forces would find ways to evade it anyway, here let me give some ideas on top of my head
What would happen if people paid outsourcing companies via stablecoin crypto, how would you tax that?
What if things like this can count as gig work and laws related to that?
What if an outsourcer creates their own mini company and such creates an invoice, I am not sure but this would be considered a service so how would that work, is there a service tax if so how much %?
Suppose somebody got a consultancy company to work on a project and then just created the project end to end and deployed it and just tweaked it enough where its a mini saas designed just for that company, the company/consultancy can argue its a saas, so how would the taxation work for saas. Are we gonna reach a point where even things like saas could be highly taxed?
The easiest way seems to me crypto for (bootstrappable outsourcing?) but depending upon the size of the outsourcing, they can employ multiple methods as I gave.
How would the govt approach the multiple loopholes as such?
The whole issue stems from a pure capitalist system where it sometimes rewards to do malicious things so long term, countries need to find ways of supporting social entreprises/funding them.