Unfortunately economics is rarely that simple.......
First, outsourcing usually occurs because of two primary factors.........cost......and government regulation.
In the instant case in the US, much of the outsourced jobs stem from union activity placing US labor at an uncompetitive disadvantage with the same manufactured goods produced elsewhere. Labor typically being the largest cost component of any manufactured item.
Regulation then further tips the balance in the direction of outsourcing, as the US government has, over the past four decades or so decided to regulate workplace environment, safety, emissions, hazardous waste disposal, energy consumption, etc.......on and on..........
Then there is the sheer absurdity of "taxing the shit" out of a corporation that decides to move their headquarters overseas........how do you propose to do that? Once the corporation has established themselves in a foreign environment, they are out of reach of US taxing authority, unless you propose to impose a tariff on the goods that they import........
And that is the real root of your proposal......protectionism........it has been tried in the past, and rarely works. All that we end up with is that US goods are so expensive that they can marginally only be purchased by US consumers, and manufacturing for export would drop to zero, as our goods would be uncompetitive in the world marketplace.......end result, more jobs and markets lost.
We have evolved into a global marketplace, like it or not, and the only way to survive in it is to compete.......not isolate ourselves with punitive taxation and regulation.......
doc
