Offshoring jobs could drain public coffers, critics warn Corvallis Gazette-Times.com (m/dd)
Although proponents of offshoring dismiss such concerns as far-fetched or naive, some tax experts say the migration of lucrative technology jobs to India and China is shrinking U.S. employee tax contributions and could exacerbate state budget shortfalls. Others say offshoring could erode already-strapped Social Security, Medicare, workers compensation and other payroll-deduction funds more quickly than anticipated.
ut up to one-quarter of lost wages translate to lost tax revenues, by conventional accounting methods. So if 3.3 million white-collar jobs and $136 billion in wages move overseas by 2015 as Forrester Research predicts, that means federal, state and local tax receipts could decline as much as $34 billion.