US measure: CM calls for national debate

Chief Minister Yeddyurappa on Wednesday said US President Barack Obama’s announcement to end tax sops to US firms outsourcing jobs to countries like India, will not have much impact on the technology hub of Bangalore.

“The announcement will have only marginal impact on the third-party IT vendors.

Changes may result in higher tax payouts for US companies. Bangalore provides cost advantages for US-based IT firms. The competitiveness of such companies vis-a-vis European and Japanese firms will suffer if the US goes ahead with its plans to end tax incentives”, he told reporters.

Calling for a national debate on the issue, Yeddyurappa said that the State government, on its part, will take all necessary steps to protect the interest of IT companies.

A meeting with representatives of top IT companies will be held shortly to gather their views. If necessary, talks will be held with the new government at the Centre after the poll results are out.. The CM also said outsourcing has been a lesson to Karnataka that one should not depend too much on anything.  KPCC President R V Deshpande said the CM should take immediate steps to provide job security to employees working in IT firms in Bangalore.