President Obama has identified companies who, in an effort to avoid high taxes and other costs in the U.S., have moved jobs overseas. The President’s solution is to raise taxes on them. What’s wrong with this strategy?
If a shareholder of a international company was given a chance to vote on whether the company would pursue a cost ineffective strategy or become a foreign company, what would be the likely outcome? This is the most extreme example, but I think it properly characterizes the choices companies affected by the President’s plan will have to make.