| View video of President Obama explaining his tax plan: |
I am extremely proud that American voters elected Barack Obama as President of the United States. With excessive self-interest, in my personal opinion, Cisco issued a disingenuous statement last week that opposed President Obama's tax plan which seeks to kill U.S. tax incentives that outsource U.S. jobs overseas to India. Simultaneously, Cisco refused a request by yours truly to explain in detail its opposition against President Obama's tax plan. So it was no surprise to learn that the Prime Minister of India has joined Cisco in attacking President Obama's tax plan. It appears that India's information technology firms derive 61% of their total sales from the United States according to India's National Council of Applied Economic Research (NCAER). Additionally, the India Times is reporting that Indian IT professionals are slamming President Obama's tax plan because it would hit business coming India's way and many Indians would lose their jobs. |
I would like to personally thank and congratulate President Obama for having the integrity and patriotism to stand up to companies like Cisco and its outsourcing of U.S. jobs to India!
Amazingly, the photo caption at left reads:
"Indian Minister for Information Technology and Communication Dayanidhi Maran (R) shakes hands with Chairman and Chief Executive Officer of Cisco Systems Inc. John T. Chambers during a press conference in New Delhi, 06 December 2006. Global Data networking company, Cisco Systems today hinted at setting up its manufacturing plans in India, which will include some of its mainline products like routers and switches."
It is interesting to note that according to Wikipedia, out of Cisco's 134 acquisitons, only 4 were acquired from outside the U.S. That means Cisco is willfully transfering U.S. technical superiority and know-how overseas to India:
Big Players in Chip Design Buy Into India
"When Cisco CEO John Chambers turned up in New Delhi last October and met with the country's prime minister, Manmohan Singh, he announced the company would put US $750 million into its own operations in India during the next few years, much of it to beef up its fledgling chip design laboratory in Bangalore.
"Cisco's team in Bangalore claims it already represents the world's largest ongoing developer of custom-designed application-specific integrated circuits (ASICs). We started with ASIC verification in 1999, but today we are designing platforms, which will go in the Cisco products to be rolled out in two years, Johnny Bastian, a senior manager of engineering at Cisco India, told IEEE Spectrum. We began with 3 million gates [on a chip] and have now gone up to 45 million gates. Cisco's managers evidently have decided that it will pay to let Indian entrepreneurs take the lead in some areas."
Related story:
Cisco quietly downsizing through outsourcing
What's your take, are you hoping along with Cisco and the Indian Prime Minister that President Obama's tax plan will be defeated?
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This is what I think
If Cisco would not advertise list price for products then always have partners sell them for 43% to 50% off they might make money. Then Cisco really could have more jobs in the USA and not in India where they pay 80% of what an American workers makes.
Looks like Chambers will have to find another country to send jobs to, I wonder if he has a really big vacation house in India like people say?
1,000% profit margin
It's my personal opinion that Cisco could have a 1,000% profit margin and Cisco would still outsource U.S. jobs overseas to India.
President Obama seeks to fix the U.S. tax code and Cisco along with the Prime Minister of India oppose our President's effort!
Sincerely,
Brad Reese
BradReese.Com Cisco Refurbished
President Obama succinctly states
In my personal opinion, President Obama succinctly states:
While Cisco disingenuously states:
Sincerely,
Brad Reese
BradReese.Com Cisco Refurbished
Isn't this a part of what's called
globalization? Companies that want to stay ahead of the curve and remain competitive in this ever-more connected world should surely be able to leverage the global market and its resources.
I certainly think Obama is the right man for the job, but being a 'patriot' by bringing jobs back to the US is a double edged sword. While it seems like the right thing to do it'll surely only be fuel to the fire for the Fortune 500 companies based there already looking across the pond for new talent and opportunities.
This isn't a Cisco-centric story (no surprises there Brad ;-)) but one I think will hit many US based companies hard.
President Obama's tax plan addresses globalization
President Obama's tax plan addresses globalization:
Why is Cisco against President Obama's tax plan which will give tax cuts to companies investing in research and development in the U.S.?
Sincerely,
Brad Reese
BradReese.Com Cisco Refurbished
My 2 cents
Not sure I agree with this thought process. Patriotism has nothing to do with paying taxes, otherwise millions of people in the US would "want" to pay taxes rather then receive money from the government.
Having said this, a companies responsibility is to the owners, public or private. So we agree that even if Cisco made a 1000% profit, they may still outsource. So the problem is not profit, it's about competing in a global economy. So, isn't the question more about why companies outsource or build facilities in other countries?
If you wish to include Patriotism, have the American workforce figure out a way to create value for their service, create a product superior to others, and purchase these products and services to support their industry.
American workforce has created billions of wealth for Cisco
According to Wikipedia, out of Cisco's 134 acquisitions, only 4 were not U.S. companies.
So it has been the American workforce that has created billions in wealth for Cisco and its shareholders!
Obviously, Cisco has no problem transferring that wealth overseas under the current broken U.S. tax law.
President Obama's tax plan will "fix" Cisco's transfer of American wealth overseas!
Sincerely,
Brad Reese
BradReese.Com Cisco Refurbished
Patriotism
The patriotism is not in paying taxes but reducing incentives to offshore, thereby keeping Americans employed. With the tax break, companies are practically penalized for having employees in the United States.
Actually...
Actually Brad the more correct statement would be "it has been the Cisco workforce that has created billions in wealth for Cisco and its shareholders." Not all the 65000 Cisco employees are in America.
Cisco grew shareholder wealth by making acquisitions
Cisco grew shareholder wealth by making acquisitions, according to Wikipedia, out of 134 acquistions made by Cisco, only 4 were not U.S. companies.
Based on the broken U.S. tax law which gives financial incentives to Cisco for investing overseas, we are now seeing Cisco's former "American technical wealth" being transferred overseas.
According to IEEE Spectrum:
President Obama's tax plan aims to make sure that it doesn't pay for Cisco to let Indian entrepreneurs take the lead!
Sincerely,
Brad Reese
BradReese.Com Cisco Refurbished
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