The Senate is poised to consider 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, and will likely vote on the legislation this week. Stabenow's Bring Jobs Home Act will close a loophole that rewards companies that ship jobs overseas with a tax deduction, and also provides a tax cut for U.S. companies that move jobs and business activity back to America from another country.
"We need to be exporting our products, not our jobs," said Stabenow. "Instead of giving tax breaks to companies that ship jobs overseas, we need to be cutting taxes for U.S. companies that create jobs in America. Michigan is home to the hardest-working, best-skilled workforce in the world, and our entrepreneurs are turning innovative ideas into new job-creating businesses. My initiative will help bring new jobs to Michigan by providing an incentive for American businesses to bring jobs home, and it will stop rewarding companies that outsource."
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.
Creates a new tax cut to encourage U.S. companies to move jobs and business activity from another country back to America. Specifically, the bill will allow U.S. 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. The company will be able to apply the 20% tax credit against its corporate income tax. Companies bringing jobs home would then still qualify for the deduction currently available for the costs associated with moving personnel and business activity, as well as the new 20% tax credit (i.e., the 20% tax credit is in addition to the current deduction, not instead of).
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.