Ways and Means Committee Democrats today introduced legislation to provide tax credits to businesses that brings jobs and business operations back to America from another country. The Bring Jobs Home Act, H.R. 6152, provides a 20 percent tax credit for businesses that "insource" jobs back to the United States and is paid for by closing tax loopholes for companies that "outsource" jobs overseas and treat distributions of debt securities in a tax-free spin-off transaction in the same manner as distributions of cash or other property. (Summaries below)
The Bring Jobs Home Act is the fifth measure introduced in recent weeks as part of the No Excuses agenda as Democrats seek to encourage Republicans to finally act on measures to spur job growth.
"America needs to be in the business of exporting goods, not jobs. That is why I strongly support the Bring Jobs Home Act. It would end the flow of American jobs overseas and encourage U.S. manufacturers to bring outsourced jobs back home. This is exactly the kind of jobs policy Congress needs to be focusing on -- not wasting time on Republicans' political stunts," said Rep. Pete Stark (D-CA).
"This bill rewards businesses that bring jobs back to the United States and ends preferences for companies that outsource American jobs," said Ways and Means Ranking Member Sander Levin (D-MI). "Surely Republicans can agree with Democrats that we should encourage businesses to bring jobs to the United States and discourage outsourcing. It is time for Republicans to stop putting politics first and start acting to help American workers."
"I'm pleased that the Bring Jobs Home Act is part of the "No Excuses Agenda,' and it should be a top priority for Congress. There is no question we should help companies bring jobs back home and stop the corporate welfare for outsourcing in the tax code," said Rep. Bill Pascrell (D-NJ). "After 19 months, the Republican Majority has not put forth a comprehensive jobs agenda. Recent studies show that upwards of a quarter of all jobs are at risk of being outsourced. It's time that Congress act to make sure this doesn't happen by reversing the flow of jobs abroad to make sure we create jobs right here at home."
"We are still fighting to put the economy back on the right track. The Bring Jobs Home Act will cut taxes for companies that create jobs here at home, encouraging businesses to invest in American workers instead of spending their money overseas. I urge all my colleagues to support this bipartisan jobs-spurring legislation. There is no excuse not to -- this is about creating jobs in America," said Rep. Charlie Rangel (D-NY).
"Pundits are saying that Congress isn't going to do anything of value before the 2012 elections. This is becoming more apparent of our Republican colleagues," said Rep. Jim McDermott (D-WA). "Since the President took office, Republicans have done everything to not create jobs, help businesses or aid the economy. They've been singularly focused on preventing President Obama from being reelected. Now is not the time for politics. Ways and Means Democrats have now offered 5 bipartisan bills, supported by Republicans in the past that can and should be passed immediately. It's a shame that Republicans care more about playing politics than helping the middle class."
"Right now, 80 percent of US manufacturing jobs are at risk of being outsourced. In California, that means more than 620,000 jobs are at risk of being moved overseas," said Rep. Mike Thompson (D-CA). "Getting American jobs back on our own shores isn't a Republican priority, it isn't a Democratic priority, it is a national priority. The House Majority should join us in passing this bill and putting Americans back to work."
"We've got to be doing everything in our power to get Wisconsinites and Americans across the country back to work," said Rep. Ron Kind (D-WI). "Rewarding companies for bringing jobs home and closing the unfair tax loopholes for companies sending them overseas, is just plain commonsense. It helps strengthen our economy, creates good paying jobs, and gives employers the incentive and confidence they need to continue to grow and hire."
"Nevada's middle-class families need someone who fights for them, not for Washington special interests," said Rep. Shelley Berkley (D-NV). "That's why I'm proud to announce my support for this legislation that would reward companies who invest and create jobs right here in Nevada and across the nation and would finally get rid of outrageous tax breaks for corporations that ship American jobs overseas."
"Every parent knows that if you reward bad behavior, you get bad behavior," said Rep. Joe Crowley (D-NY). "The Bring Jobs Home Act turns the tables and gives the incentive to companies who keep jobs here in the U.S. rather than to those who ship jobs overseas. If Republicans are serious about improving our economy and putting Americans back to work, they should have no problem joining us to support this much-need legislation."
Summary of the Bring Jobs Home Act:
Tax Credits for "Insourcing" Jobs
The bill creates a new tax credit to provide an incentive for U.S. companies to move jobs from overseas back to America. Specifically, the 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.
Closing Tax Loopholes for Companies That Outsource American Jobs
The Bring Jobs Home Act 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.
Treatment of Securities of a Controlled Corporation Exchanged for Assets in Certain Reorganizations
Under present law, taxes are generally imposed on parent corporations where they extract value in excess of basis from their subsidiaries prior to engaging in a tax-free spin-off transaction. Therefore, if a subsidiary corporation distributes cash or other property to its parent in excess of the parent's basis in the subsidiary or if a subsidiary corporation assumes parent debt in excess of the parent's basis in the subsidiary, the parent corporation will recognize gain. However, taxes are not assessed if a subsidiary corporation distributes its own debt securities to a parent corporation prior to a spin off transaction even where the value of these securities would exceed the parent corporation's basis in its subsidiary. The bill would treat distributions of debt securities in a tax-free spin-off transaction in the same manner as distributions of cash or other property.