Taxing Outsourced Calls Will Cost American Jobs, Says CEO

Jun 01, 2010, 10:51 ET from

LOS ANGELES, June 1 /PRNewswire-USNewswire/ -- Proposed legislation to tax customer service calls forwarded overseas would burden already-struggling American businesses and would decrease U.S. exports, the CEO of warned today.

U.S. Sen. Charles Schumer (D-N.Y.) is proposing a new law that would require American businesses to notify callers that their call was being forwarded overseas and add a $.25 tax to each call.

"It is nearly impossible to tax a non-U.S. company, so this will be a tax on American businesses who will pass the increased cost on to their U.S. customers. Businesses already considering moving their operations overseas will be even more incentivized to do so if this proposal were to become law. This proposal is protectionism at its finest, and very short-sighted," said Travis May, CEO of provides businesses across the globe with phone numbers in more than 70 countries and 700 cities. U.S. customers of the company buy numbers in Australia, Hong Kong, the United Kingdom, France and dozens of other countries. Calls from those countries are forwarded back to offices or call centers in the U.S., helping the American company to export their products and services overseas. also provides phone numbers to businesses in nearly every country in the world, to make it easier for people to buy products, visit hotels, and fly airlines.

"A proposal to tax American businesses and require them to warn callers when calls are forwarded to another country will not save jobs, it will cost jobs while aiding the continued destruction of American wealth and influence," said May. "As an employer, it is prohibitively expensive to do business in this country, primarily because the talent pool is tiny due to our poor educational system. Even in a down economy, American technology companies have difficulty finding well-trained individuals who are prepared to work at the pace of international business."

Upon request, many overseas call centers will forward callers back to the U.S. "Foreign call centers often provide sub-standard support and American consumers already know this," said May. "If they won’t forward your call back to the U.S. vote with your feet and your wallet."

"The way to create American jobs is not by taxing American businesses," May said. “I would ask Senator Schumer to instead turn his considerable power and influence to a solution that will not only win votes, but turn the tide of this great country back to wealth creation. That solution is education. We are wasting the brain power of this country by failing to challenge our students to realize their full potential.”

Launched in 2002 and based in Los Angeles, Calif., provides business around the globe with a link to customers with advanced tools such as virtual phone numbers in more than 70 countries, international call forwarding, virtual PBX, VoiceMail2MyEmail™, Fax2MyEmail™, and more. For more information, go to