Congresswoman Shelley Berkley today announced that she will introduce the "American Jobs First" Act, innovative legislation that creates powerful new tax incentives for multinational companies to bring profits made overseas back to the United States to invest in American job creation and to help get the U.S. economy back on track.
"With rising unemployment in Nevada, American companies should be creating jobs right here in the United States -- not China," said Berkley. "Unfortunately, some Washington Republicans have their priorities upside down, fighting to protect tax breaks that encourage corporations to ship American jobs overseas. That just doesn't make sense. Instead of encouraging outsourcing, the American Jobs First Act will help companies start 'insourcing' good paying jobs right here in Nevada and across the country."
THE AMERICAN JOBS FIRST ACT
The "American Jobs First Act" would temporarily reduce the tax rate on repatriated earnings for companies that hire new workers or increase employees' wages.
Under current law, these companies can defer taxes on earnings that are permanently reinvested overseas. If a company sends those dollars back to the United States, they are taxed at a rate of 35 percent. Businesses hold trillions of dollars overseas to avoid the 35 percent tax rate, rather than investing in job producing enterprises in the U.S.
The "American Jobs First Act" would provide companies a one-year reduction of the tax rate on these earnings if they create jobs and/or payroll in the United States. The more employees they hire with this money, the lower the tax rate they can claim.
Other current proposals on repatriated earnings fail to link a lower tax rate to actual job creation. In contrast, the Berkley legislation would require companies to create jobs or increase wages in order to receive the maximum incentives.