[phil_will1]

"it seems to me that income tax rates in this country play a major role in the outsourcing of services and production."

My sense is that our tax system is a major problem with respect to the flow of goods and is therefore significant in our lack of competitiveness internationally in the manufacturing and agricultural areas. Although that system also tends to inflate the cost of labor here, and may therefore also contribute to the outsourcing trend, I would think it isn't as significant a factor there. The biggest factor, it would seem, is that there are huge pools of educated workers who will gladly work for a fraction of what their US counterparts would require.

[ninenot]

The biggest factor, it would seem, is that there are huge pools of educated workers who will gladly work for a fraction of what their US counterparts would require.

Phil, that's a myth.

Read the book "Re-Engineering the Corporation" in which it is flatly stated (and truly stated) that most jobs in the USA were designed for high-school graduates. Not ALL jobs--but MOST jobs.

There's no "higher-skill" level in China or India; they are just plain CHEAPER.

And yes, taxes and regs impose significant costs here which are not imposed elsewhere.