He's not saying it's only true when salaries are equal. It makes a significant difference at the margin: if you're an employer debating whether to employ US talent or offshore talent, weighing time zones, skill and other factors against cost, then introducing a tax advantage for domestic hiring will cause those employers who were otherwise indifferent between the two options to now prefer US labor.
He's not saying it's only true when salaries are equal. It makes a significant difference at the margin: if you're an employer debating whether to employ US talent or offshore talent, weighing time zones, skill and other factors against cost, then introducing a tax advantage for domestic hiring will cause those employers who were otherwise indifferent between the two options to now prefer US labor.