The biggest concern about the U.S. economy is the loss of jobs over the last decade, especially those in the manufacturing sector.  Over the last few years, many U.S. companies either moved their manufacturing plants (and jobs) out of the country or closed their U.S. locations and outsourced the work to third parties in the Far East, most notably India and China.

The president pointed out that over the past decade, the U.S. lost several million manufacturing jobs through “outsourcing,” in which companies moved jobs overseas to take advantage of lower costs.

But just very recently, many of these companies who farmed out their work to other countries are in the process of, or are pondering the thought of, bringing their business (and jobs) back to the United States.

Now, President Obama is highlighting companies that have brought jobs back.  He wants to reward companies that create jobs in the U.S. and discourage those that move them elsewhere. One such company is Master Lock. They have returned 100 jobs to the U.S. from China.

The President has also indicated that the trend is reversing.  “More and more companies like Master Lock are now insourcing, deciding that if the cost of doing business here is not too much different than the cost of doing business in places like China, then why wouldn’t you rather do it right here in the United States of America?” asked Obama.

The president has now reached out to Congress to come up a plan that offers tax breaks and tax incentives to companies that create manufacturing jobs in the U.S. while ending tax breaks for businesses that move jobs overseas.

Obama says that: “manufacturing is coming back. Companies are starting to bring jobs back. The economy is getting stronger. The recovery is speeding up.”

American factory output has risen almost 17 percent from its low point in 2009, but is still seven percent below its peak in 2007.

Now it’s time for Congress to band together with the President to come up tax breaks and tax incentives for companies creating manufacturing jobs in America.

Will TV production companies stop filming in New Jersey?  Odds are they will, if the state axes the tax credit for production companies. At a state hearing Wednesday, actors, producers and directors made their case to extend the tax credit.

Representatives from “Mercy” and “Law and Order: Special Victims Unit” urged Republican Gov. Chris Christie to reconsider ending the 20 percent tax credit the state has offered since 2006 to lure movie and TV production companies to the state. Both TV series are filmed largely in New Jersey.

New Jersey has benefitted greatly by the popular and successful TV drama “The Sopranos”. Feature films such as “The Wrestler” starring Mickey Rourke as a professional wrestler past his prime and “Julie and Julia” starring Meryl Streep as cooking legend Julia Childs were also filmed in New Jersey.

“If there hadn’t been a credit program in place, New Jersey would not have been an option” as a location for “Mercy,” series producer Jim Bigwood told the hearing chaired by state Senate Budget Appropriations Committee Chairman Paul Sarlo, a Democrat and supporter of the tax credit.

Yesterday’s hearing was held in the warehouse where hospital drama “Mercy” has been filmed since last year. The series was not renewed by NBC but had been considered for cable, a possibility that was nixed because of uncertainty over New Jersey’s tax credit, according to Brian O’Leary, tax counsel for NBC Universal.

O’Leary contrasted the fate of “Mercy” with that of “Law and Order: Criminal Intent,” a New York-filmed series that NBC dropped but opted to move to USA Network.

Critics have characterized New Jersey’s film tax credit as an unnecessary handout to Hollywood. Christie has vowed to cut it from the state budget that must be passed by July 1.

New Jersey will do anything to close it’s budget gap, but cutting the New Jersey tax credit to production companies will continue the flow of businesses leaving the state. According to a study released by Boston College’s Center on Wealth and Philanthropy, from 2004 through 2008, $70 billion in wealth left New Jersey.

Will the TV stars rally for a tax credit extension really make a difference? I don’t think so. It appears the state hasn’t learned that offering tax credits and tax incentives attract, and keep, businesses.

No wonder New Jersey has a budget deficit.

source: The Jersey Journal