The Senate on Tuesday began consideration of the Bring Jobs Home Act, legislation to end taxpayer subsidies to companies that ship jobs overseas and to incentivize companies to bring jobs back to the United States. U.S. Senator Chris Coons (D-Del.), a member of the Senate Budget Committee and the Senate Manufacturing Caucus, is an original cosponsor of the legislation, which is expected to receive a vote of the Senate on Thursday.
"It is unconscionable that in this economy, we would give tax breaks to companies that ship jobs overseas," Senator Coons said. "The Bring Jobs Home Act not only aims to curb this trend, but make it easier for companies to bring those jobs home to the United States. This is a common-sense bill -- hopefully the first in an effort to make our tax code more fair -- that I hope my colleagues will join me in supporting this week."
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. This 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.
The measure also creates a new tax cut to incentivize U.S. companies to move jobs and business activity from another country 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.