Congressman Bill Pascrell (D-NJ) and U.S. Senator Debbie Stabenow (D-MI) today introduced a new initiative in their respective chambers to boost the economy by encouraging businesses to bring jobs to America and discourage companies from shipping jobs overseas. The Bring Jobs Home Act will cut taxes for U.S. companies that move jobs and business operations to America from another country. The initiative will also end tax loopholes that reward companies that ship jobs overseas. Stabenow and Pascrell announced their plans to introduce the legislation last week in their home states. Today President Obama called on Congress to pass the lawmakers' tax cut.
"Passing the Bring Jobs Home Act will stop our tax code from providing corporate welfare by closing the loopholes that encourage outsourcing, and give incentives to businesses to reverse the flow of jobs back home," said Pascrell, a member of the House Ways and Means Committee. "The light at the end of the economic recovery is powered by manufacturing; we cannot stand around while our manufacturing base continues to erode. Our ability to produce goods here at home is the key to America keeping its competitive edge in the world market."
"We need to be exporting our products, not our jobs," Stabenow said. "Instead of letting companies use tax loopholes that help them ship jobs overseas, we need to be cutting taxes for companies that create jobs in America. It's time to stop rewarding companies that send jobs to other countries and instead support businesses creating jobs here at home."
Senator Stabenow and Congressman Pascrell's Bring Jobs Home Act:
Creates a new tax cut to provide an incentive for U.S. companies to move jobs and business activity from another country back to America. Specifically, her initiative will allow companies to qualify for a tax credit equal to 20% of the cost associated with bringing jobs and business activity back to the United States.
Ends a tax deduction for companies that outsource jobs and business activity. Right now, the cost of moving personnel and components of a company to a new location is defined as a business expense that qualifies for a tax deduction. Senator Stabenow's legislation will keep this deduction in place for companies that bring jobs and business activity back home but businesses would no longer be able to get this tax benefit for shipping jobs overseas.