Stabenow’s Initiative Would End Tax Giveaway That Rewards Companies that Send Jobs Overseas, While Cutting Taxes for Companies that Bring Jobs Back to U.S.
U.S. Senator Debbie Stabenow’s Bring Jobs Home Act, which ends tax breaks for companies that ship jobs overseas and cuts taxes for businesses to bring jobs back to America, was supported by a majority of Senators today but Senate Republicans blocked the bill with a procedural move. While Sen. Stabenow’s initiative received a majority of votes in support, 56-42, the bill was blocked by a Republican filibuster which meant the legislation required 60 votes to move forward.
“Michigan has been hit hard by outsourcing. We need to be exporting our products, not our jobs,” said Stabenow. “It’s outrageous that taxpayers are paying companies to send jobs abroad. Instead of giving tax breaks to companies that ship jobs overseas, Congress should cut taxes for U.S. companies that bring jobs back to America. We are going to continue to work to get Congress to put politics aside, put American jobs first and pass this bill.”
Senator Stabenow’s Bring Jobs Home Act:
Ends a tax break for U.S. companies that outsource jobs and business activity. Right now, the cost of moving personnel and company operations to a new location is defined as a business expense that qualifies for a tax deduction. Senator Stabenow’s legislation would no longer allow this deduction for companies that move jobs and business activity outside of the U.S. However, the deduction is maintained for businesses that move jobs back home (or move within the U.S.).
Creates a new tax cut to encourage U.S. companies to move jobs and business activity from another country back to America. Companies bringing jobs home would still be able to claim the current moving expense deduction when bringing jobs home, and would also receive a tax credit equal to 20% of the cost associated with bringing jobs and business activity back to the United States. The company will be able to apply the 20% tax credit against its corporate income tax.
Senator Stabenow has long-championed efforts to ensure U.S. businesses and workers can become more globally competitive and create more jobs in America. Last year, Senator Stabenow introduced her American Competitiveness Plan to crack down on other countries’ trade violations. One of the main provisions of Stabenow’s Plan, which called for a trade enforcement unit to hold countries that violate trade laws accountable, was created by President Obama earlier this year. Other provisions of Stabenow’s plan include a bill to crackdown on China’s currency manipulation (which passed the Senate last year with overwhelming bipartisan support) and provisions to strengthen penalties for foreign companies who steal American technology and intellectual property.
￼EXECUTIVE OFFICE OF THE PRESIDENT OFFICE OF MANAGEMENT AND BUDGET
WASHINGTON, D.C. 20503
July 18, 2012
STATEMENT OF ADMINISTRATION POLICY S. 3364 – Bring Jobs Home Act (Sen. Stabenow, D-MI, and 13 cosponsors)
The Administration strongly supports Senate passage of S. 3364, a bill that would encourage companies to invest in the United States and bring jobs back while preventing companies from receiving tax breaks for shipping jobs overseas.
The Nation’s tax code does too little to encourage job creation and investment in the United States while allowing firms to benefit from incentives to locate production and jobs overseas. This bill can help attract and keep jobs in the United States by providing a 20 percent general business tax credit for eligible expenditures associated with bringing jobs back, which is paid for by preventing firms from receiving tax breaks for deducting expenses associated with outsourcing.
“Fair pay. Let’s make sure the next generation of women are getting a fair deal. Let’s make sure the next generation of good manufacturing jobs are made in America. Let’s make it easier, not harder, for companies to bring those jobs back home. Tomorrow, senators will get to vote on the Bring Jobs Home Act. Instead of rewarding companies for shipping jobs overseas or rewarding companies that are moving profits offshore, let’s create jobs right here in America and let’s encourage those companies.”
Wednesday, July 23, 2014
Congress votes on the ‘Bring Jobs Home Act’
Update: July 30, 2014 – Senate GOP blocks tax hike on firms moving overseas