U.S. Senator Joe Manchin (D-W.Va.) voted today for legislation that would provide tax incentives to encourage business to "insource," or move their overseas operations back to the United States. The legislation would give businesses a 20 percent tax credit on all insourcing expenses they experience as they shut down a unit overseas and move it back to the United States or expand in the United States, as long as moving operations would increase domestic employment. The legislation also eliminates tax benefits for businesses that are moving their operations overseas.
"When our manufacturing problems are so bad that even the U.S. Olympic committee is outsourcing the team uniforms, we need to make some changes," Senator Manchin said. "I'm supporting this bill because it's time for us to rebuild America with American jobs -- plain and simple. If we don't turn this around, too many West Virginia jobs are at risk of being outsourced.
"At a time when so many West Virginians and Americans are struggling to find employment, we must do all we can to encourage businesses to invest in America and American workers. Providing tax incentives for companies that bring business back to the United States makes good common sense, especially if we ensure that the tax incentives are directly related to job creation."
West Virginia has lost more than 20,000 jobs in the manufacturing sector and 3,000 information technology jobs between 2002 and 2012.
Between 2000 and 2010, the United States lost more than one-third of its manufacturing jobs, approximately 5.5 million full-time positions, according to the Bureau of Labor Statistics.
The annual trade deficit has also increased by $300 billion between 1999 and 2011, at a cost of more than 3.5 million additional jobs.
West Virginia jobs at risk of being "off-shored":
According to a report from Alan Blinder and Alan Krueger, economists at Princeton University, about one-quarter of American jobs have the potential of being "off-shored," although that number varies across different occupations.
According to the most recent data from the Bureau of Labor Statistics, six occupations are particularly vulnerable, with 35 percent of the jobs at risk of being off-shored. Nationwide, this equates to 21 million jobs, including nearly 81 percent of manufacturing jobs.
In West Virginia, that means about 102,409 jobs are at risk.
West Virginia has 19,280 Business and Financial Operations Occupations. About 16.4 percent of these jobs are offshorable, meaning about 3,162 jobs are at risk.
West Virginia has 9,410 Computer and Mathematical Occupations. About 20.5 percent of these jobs are offshorable, meaning about 1,929 jobs are at risk.
West Virginia has 31,080 Management Occupations. About 16.4 percent of these jobs are offshorable, meaning about 5,097 jobs are at risk.
West Virginia has 40,310 Production Occupations. About 80.7 percent of these jobs are offshorable, meaning about 32,530 jobs are at risk.
West Virginia has 115,160 Office and Administrative Support Occupations. About 41.2 percent of these jobs are offshorable, meaning about 47,446 jobs are at risk.
West Virginia has 68,790 Sales and Related Occupation jobs. About 17.8 percent of these jobs are offshorable, meaning about 12,245 jobs are at risk.