Experts: Tax changes won't curb offshoring

Analysts and tax experts contend that federal tax-code changes proposed by President Barack Obama last week likely won't meet his goal of persuading IT vendors to curb plans for opening and expanding offshore facilities. The proposed tax changes, which must be approved by Congress, would affect IT vendors that run various operations overseas by disallowing deductions for various offshore expenses, including payroll. But experts say companies use offshoring to find talented technical workers in sufficient numbers and to take advantage of salary gaps between the U.S. and other countries.

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