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.