Having Overseas Development

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There are many companies that now espouse having overseas development centers for cost reasons.

I can see dedicated centers where you hire and manage the talent, but I have a serious question.

Why does U.S. tax law promote this?

Why if I have 1,000 people that I pay in the U.S. that pay Federal Taxes, State Taxes, Social Security, and I pay matching do I pay the same rate for somebody that has that 1,000 and makes the same amount in another country and makes the same amount I do.

If we are willing to have no safety net, everybody out for themselves I suppose I get it, but that is not a place I want to live.

It seems very simple to me.

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