Posted on 09/13/2004 6:16:50 PM PDT by RWR8189
MEMORANDUM FROM: BC'04 POLICY DEPARTMENT John Kerry’s economic adviser, Robert Rubin, appeared on ABC’s “This Week” show with George Stephanopoulos yesterday. Contrary to Kerry’s claims, Rubin confirmed that Kerry’s proposed tax increase on U.S. companies competing abroad would not stop outsourcing. Rubin said outsourcing is good for our economy and part of trade liberalization. He outlined several steps for an international trade agenda – all of which President Bush is already doing. Rubin never mentioned Kerry’s agenda of economic isolationism. Rubin said outsourcing is not a problem, that instead it’s beneficial and good for our economy: RUBIN: “It's part of trade liberalization, and trade liberation, as Senator Kerry has said and President Clinton used to say, is very much beneficial to our economic well being…” STEPHANOPOULOS: “But it sounds like you’re saying that outsourcing isn’t that big a problem for the economy.” RUBIN: “I think outsourcing is part - I don’t think outsourcing is a phenomenon unto itself. I think outsourcing is part of a much larger phenomenon and the much larger phenomenon is trade liberalization and I think trade liberalization has been good for our economy and I think trade liberalization will continue to be good for our economy.” Rubin confirmed what other Kerry economic advisers have said: Kerry economic adviser Robert Reich – “Offshoring is not at the heart of the matter. I don't think it is a major part of the job picture." (“Not Many Jobs Are Sent Abroad, U.S. Report Says,” New York Times, 6/11/04) Kerry economic adviser Laura Tyson – “‘I think it is the case that all the economic evidence suggests to date that offshoring has been a relatively small fraction of the job loss,' said Laura Tyson, former chair of the National Economic Council." (Carolyn Lochhead, “Kerry adviser plays down impact of offshoring jobs,” San Francisco Chronicle, 3/30/2004) Rubin said Kerry’s proposal will not stop outsourcing: STEPHANOPOULOS: “Senator Kerry has said that he would take away the tax break that allows companies to not pay taxes as they as long as they keep the income overseas. Will that stop the outsourcing problem?” RUBIN: “No, I think that outsourcing is part of a much larger issue.” Again, Rubin confirmed what economists and even Kerry campaign aides have conceded: Economists say proposal won’t stop outsourcing – Joel Slemrod, an international tax expert at the University of Michigan Business School, argued “that the change in tax incentives probably would not be large enough to overcome other factors encouraging companies to shift employment abroad, such as lower wages. ‘To those who see [outsourcing] as a problem, this is not a solution,’ he said.” (“Kerry Wants to End Tax Break for Corporate Profits Abroad,” Los Angeles Times, 3/26/04) Kerry campaign admits it won’t stop outsourcing – “Campaign officials acknowledged that the new plan would not stop the broader trend of outsourcing jobs to low-wage countries.” ( “Kerry to Propose Eliminating a Tax Break on U.S. Companies' Overseas Profits,” The New York Times, 3/26/04) Rubin said the U.S. should do four things President Bush is already doing: 1. Assistance for dislocated workers RUBIN: “But in putting in place trade liberalization, you have to integrally include providing assistance for those dislocated…” President Bush is already doing this – · Job Training And Employment Assistance: The President’s 2005 budget proposes $23 billion for job training and employment assistance. (Source: Remarks Prepared for Delivery by Elaine L. Chao, Louisiana Economic Forum Southeastern Louisiana University, Hammond, Louisiana 8/2/2004) · Unprecedented Assistance for Workers Impacted By Foreign Trade: The President enacted a major expansion to the Trade Adjustment Assistance program and increased funding 150% to $1.051 billion in 2005. Workers dislocated by increased imports or a shift of production to certain foreign countries can receive support for: two years of training; income support; a Health Coverage Tax Credit covering 65% of the premium for qualified health insurance; and support to cover a portion of the costs of relocating a worker and their family to a new job. (Source: U.S. Department of Labor 2005 Budget) · Training for High-Paying Jobs: The President’s Jobs for the 21st Century provides $250 million for a new, employer-focused grant program that leverages the expertise of America’s community and technical colleges to train workers for new jobs in high-growth industries. (Source: “Fact Sheet: Jobs for the 21st Century,” White House Fact Sheet, 1/21/2004) · Reforming Federal Programs to Double the Number of Workers Trained: The President will provide $4 billion in job training funds to the nation's governors with more flexibility; place strict limits on administrative overhead; use Innovation Training Accounts (ITAs) to give workers more choices about their job training; and train an additional 200,000 people for high-growth jobs through programs run by community colleges, unions, and businesses. (Source: “Better Training for Better Jobs,” White House Fact Sheet, 4/5/2004) · Personal Reemployment Accounts: The President’s $50 million proposal will provide workers with additional flexibility in selecting the services needed to help them return to work. Eligible unemployed workers can receive $3,000 to be used for whatever training and services, such as child care or transportation, they believe will help them get back to work. As an incentive, recipients can keep the balance of the account as a cash bonus if they find a job within 13 weeks. (Source: “President Bush Acts on Helping Unemployed Americans,” White House Fact Sheet, 1/6/2003) · Targeted Assistance To Help Ease Economic Transitions: The President's Opportunity Zone will provide assistance to communities that have lost a significant portion of their economic base as a result of our changing economy. These communities will receive tax incentives, increased bond authority, and funding priority with existing grant programs for economic development, education, job training, affordable housing, telecommunications and other activities critical for revitalizing a community. (Source: “Opportunity Zones,” White House Fact Sheet, 9/2/2004) 2. Promote our competitive position RUBIN: “…and also, and I think this is critically important at this time George, effectively promote our competitive position in the global economy when China and India are developing such large numbers of well educated workers…” President Bush is already doing this – · President Bush has negotiated new free trade agreements with 12 countries and is in the process of negotiating with 10 more. (Source: USTR Statement, 7/22/04) · The new trade agreements will provide significant opportunities for U.S. agricultural products, manufactured goods, services, and intellectual property: U.S. exports of goods to these countries were $66.6 billion in 2003, making them collectively the third largest U.S. export market behind only Canada and Mexico. (Source: USTR, Robert Zoellick, Testimony Before the House Agriculture Committee, 4/28/2004) · No country is doing more than the United States to promote strong labor and environment provisions in trade agreements: Each of the completed agreements has labor and environment provisions that: fully satisfy the negotiating objectives set by Congress – and voted for by Senator Kerry – in the Trade Act of 2002; are enforceable; and hold our trading partners to a higher standard than we required in the Jordan Free Trade Agreement, which Senator Kerry says he favors. (Robert Zoellick Testimony Before the House Agriculture Committee (4/28/2004) · Enforcement is the other side of the trade negotiation coin: The Bush Administration has imposed nearly as many new antidumping orders against China in four years (8) as the Clinton Administration did in eight (21). The U.S. was the first country to file a WTO case against China – which resulted in China agreeing to stop discrimination against U.S. semiconductors. It also provided safeguard relief against Chinese textiles and Chinese steel. (Source: "Strong Enforcement Equals Free and Fair Trade," Commerce Department, 8/04) 3. Sound fiscal position and low interest rates for investment RUBIN: “…and we have to have a sound fiscal position so that we have the low interest rates for investment… President Bush is already doing this – · President’s budget reduces the deficit below the historical average: President Bush has proposed a comprehensive budget for the next five years with hundreds of pages of details. By controlling spending and growing the economy, the President’s budget cuts the deficit in half in five year. It reduces the deficit as a percentage of the economy to 1.5%, well below the historical average of 2.2%. (Source: “Budget of the U.S. Government: FY2005,” 2/04) · Long-term interest rates are historically low: The interest rate on the 10-year Treasury note is currently about 4.2% -- that’s nearly half the 7.2% historical average. (Source: Federal Reserve data compiled by Economy.com, average since 1962) 4. Invest in education, basic research and infrastructure RUBIN: “…and we have to invest in education, and basic research, and infrastructure and all else that will make us competitive.” President Bush is already doing this – · Historic Education Reforms Backed By Increased Resources: President Bush signed the No Child Left Behind Act into law to ensure that all students become proficient in reading and math and to close the achievement gap that exists between students of different socio-economic backgrounds. The President has provided the largest increase in federal education funding in history and the highest percentage gain since the 1960s. He has increased funding for elementary and secondary education by $12.2 billion (49%) to a record $36.9 billion in 2005. Support for Title I schools serving low-income and at-risk students has increased $4.6 billion (52%) to $13.3 billion in 2005. (Source: “2005 Budget Summary for Education,” U.S. Department of Education, 2/2004; “Not Since LBJ,” Investor’s Business Daily, 7/1/2004) · Ensuring Every High School Student Graduates With The Skills Needed To Succeed In College And A Globally Competitive Workforce: President Bush will increase funding for his Striving Readers program to $200 million, and establish a $200 million fund to help schools develop performance plans for entering high school students using advanced computer technology. To ensure that high school diplomas are truly meaningful, President Bush will require state assessments in grades three through eleven, supported by $250 million in annual funding. To strengthen online educational opportunities, he will create an eLearning Clearinghouse of online courses available to students and adults. He will provide a $500 million incentive fund to reward teachers who demonstrate success in preparing their students through increases in student achievement. (Source: “Strengthening Education and Job Training Opportunities,” White House Fact Sheet, 9/2/2004) · Record Levels of Financial Aid: Under President Bush's 2005 budget, student aid would increase to more than $73 billion - an increase of $25.9 billion (55%) since 2001. Almost 10 million students – 2.3 million more than when President Bush took office – will receive support. The President’s 2005 budget provides $12.9 billion for Pell Grants - a 47% increase over 2001 levels – which will help 5.3 million low-income students pay for higher education. Low-income students may also receive up to $5,000 in financial aid to study math or science. (Source: “2005 Budget Summary for Education,” U.S. Department of Education, 2/2004) · New Loan Flexibility for Lifelong Learning: The President will make loans available to help workers pay for short-term training that leads to an industry-recognized credential or certificate. These loans would help many non-traditional students upgrade their skills – including older workers, workers transitioning to new jobs, and older workers pursuing a second career. The President will modernize outdated loan restrictions to expand competency-based programs, allow students and workers to take courses throughout the year, and eliminate current federal student aid restrictions on distance education. (Source: “Strengthening Education and Job Training Opportunities,” White House Fact Sheet, 9/2/2004) · Historic Levels of Investment for Research and Development: President Bush has increased Federal R&D funding by 44% to $132 billion in 2005 including an all-time high of $26.8 billion for basic research. He has doubled the budget for the National Institutes of Health, increased funding for NSF by 30%, and increased support for nanotechnology research by 88%. President Bush is the first president to invest in embryonic stem cell research including a recent 132% increase to $24.8 million with an additional $190.7 million for non-embryonic stem cell research. To make research more affordable, President Bush believes the R&D Tax Credit should be made permanent. (Source: “Bush Administration Science and Technology Accomplishments,” OSTP, 4/2004) · Expanding Broadband: President Bush will work to make broadband affordable and accessible to all Americans by 2007. He will make permanent the moratorium on Internet taxes. He has doubled the amount of spectrum available for wireless services including Wi-Fi and Wi-Max. (Source: “Promoting Innovation and Economic Security Through Broadband Technology,” White House Fact Sheet, accessed 9/12/2004) · Next-Generation Hydrogen Research: The President has dedicated $1.7 billion over five years to develop hydrogen fuel cells and related technologies. The 2005 Budget includes $228 million for the Hydrogen Fuel Initiative, an increase of $69 million, or 43%, over 2004 funding, to develop the technologies to produce, store, and distribute hydrogen for use in fuel-cell vehicles, electricity generation, and other applications. The 2005 Budget proposes tax incentives totaling $4.1 billion through 2009 to spur the use of clean renewable energy and energy-efficient technologies. (Source: “Bush Administration Science and Technology Accomplishments,” OSTP, 4/2004) Who Robert Rubin is: Robert Rubin is an economic adviser for John Kerry. Kerry has suggested he might replace Alan Greenspan with Rubin as Chairman of the Federal Reserve. Rubin was Secretary of the Department of Treasury for President Clinton and is now a director for financial services firm Citigroup, Inc – a company Lou Dobbs of CNN has labeled as engaging in outsourcing and an exporter of American jobs. (Sources: “Greenspan nominated for fifth term as Federal Reserve chairman,” Associated Press, 5/19/04; “Exporting America: List of Companies Exporting Jobs,” Lou Dobbs Tonight, http://www.cnn.com/CNN/Programs/lou.dobbs.tonight) Rubin was a guest on ABC’s “This Week” show with George Stephanopoulos on September 12, 2004
Hell the Dems are the biggest advocates of globalization.
How can it occur without free trade?
The Union guys best wake the hell up
Just remember, all the libs that wail over outsourcing (private companies using their own money), also wailed that President Bush was letting most Iraq Contracts (Tax Dollars) go to American companies.
Yes, but John Kerry will outsource your job better, smarter, faster, less expensively, more sensitively and with more cooperation from the International Community.
Gee what a choice
Vote for Bush, just lose your job
Vote for Kerry lose your job then your life
Didn't Kerry already promise to outsource national security to The International Community?
It seems to be the one thing he's been consistent on for the past 35 years.
yeah and I really want my fate decided by the frickin' UN
Neutrino,
Over here
It looks as if Kerry has now stated clearly and explicitly what we all suspected - he is a globalist, a free traitor, and no friend of Americans.
If you want on or off my offshoring ping list, please FReepmail me!
BTTT
Thanks for the ping. The Dems will just give our jobs away faster.
After we get Bush re-elected, we need to start holding members of Congress accountable.
I'm forwarding this article to my former co-workers in the AFL-CIO.
And this comes as a surprise to who, exactly?
Offshoring under Bush = good.
Offshoring under Kerry = bad.
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