Obama vs. outsourcing

To figure out Obama's new tax plan, one needs to keep in mind the difference between outsourcing and offshoring. Offshoring is when a U.S. company sends jobs that once existed within that U.S. company overseas to a subsidiary of its own - for instance, if an IBM coding engineer's job gets moved to Bangalore, but the new employee is still an IBM worker. Outsourcing is when a U.S. company pays another company altogether for doing that job - much of it ends up in India, but a grocery store in Kansas could outsource its book-keeping to a firm in Topeka.

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