I think you’re misinformed.I think companies that outsource jobs might get tax breaks for other reasons, but I’m pretty sure there’s nothing in the US tax code that provides a break specifically for outsourcing jobs – there’d be no jobs here in the US if such a loophole existed.
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All reasonable and necessary business expenses incurred in the production of taxable income are legitimate tax deductions for business.That includes money paid to firms that specialize in outsourcing labor, production, parts, services, etc. for other companies.
Businesses outsource all of the time.Auto manufacturers hire firms that specialize in the production of electronic assemblies that are used in the computer systems on cars.They also outsource the production of mechanical, electrical, and electronic control systems.Cars all come equipped with tires, yet not a single car manufacturer makes tires.So how do cars come with tires from the factory?Outsourcing of course!
Without outsourcing, business costs would rise astronomically.Ford would have to become experts in making tires and building computers, not just in designing and assembling cars.So would Chevy, and Chrysler, and Mercedes, and BMW.
Dell would have to build smelting and injection molding factories to make the chassis and housings for all of their computers, instead of hiring firms that specialize in that type of work.They’d also have to build chip fabs to manufacture the CPUs & memory modules and another to make hard drives.Instead, Intel, who specialize in making CPUs and memory chips, can build one or two factories that specialize in those items only and supply 75% of all needs of the entire computer industry at a MUCH lower cost than if every computer manufacturer on the planet had to build their own.
The duplication of effort to reinvent the wheel thousands of times every day would double the cost of nearly everything that you buy without outsourcing.
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