Obama: No tax breaks for outsourcers

American firms will no longer get tax breaks if they move jobs to India or elsewhere, US President Barack Obama said in his first address to a joint session of Congress Tuesday night, saying he would “restore a sense of fairness” to the US tax code.

“We will restore a sense of fairness and balance to our tax code by finally ending the tax breaks for corporations that ship our jobs overseas,” he said amid loud applause by US legislators.

At least 1,000 US firms which have moved jobs abroad are likely to be affected by the proposed move to scrap a provision in the tax laws which allow them to pay lower taxes on profits repatriated from overseas. Opponents of this provision, mostly Mr Obama’s fellow Democrats, had been demanding its abolition for a long time, saying it was encouraging American companies to send jobs overseas.

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