Toddsterpatriot
Diamond Member
Are labor costs deductible for firms?Why would they not take that relatively standard deduction for labor costs?In other words, You are claiming US firms overseas are not eligible to deduct the labor cost of foreign labor they employ, in foreign States?There is no reason for foreign labor to qualify US firms for a tax break;
IBM, for example, hires foreign labor in India to manage a data center in India.
IBM cannot deduct those wages from their US taxes.
You're complaining about something that does not occur.
Us firms pay US taxes on US earnings. They can't deduct foreign labor from US earnings.
Foreign employees aren't deductible from US earnings.
Yup.