Obama was shocked when Romney pointed there are no tax loopholes for shipping jobs overseas.
"No idea what you're talking about." That was Mitt Romney's retort when President Obama repeated the claim during Wednesday's debate that companies are exploiting a loophole to ship jobs overseas. In one of the most memorable moments of the night, Romney said he's never heard of such a tax break in all his years in business.
So who's right?
Technically, companies can claim a deduction for the costs associated with moving jobs overseas.
However, the deduction is not a special loophole afforded only to companies moving work out of America, as the president sometimes makes it sound. Rather, the deduction is written into the tax code pertaining to any cost companies face in the course of doing business.
That means a company can claim the deduction whether it's moving operations to Bangalore or Boston, to Kuala Lumpur or Kansas City.