U.S. Sen. Al Franken (D-Minn.) today pressed legislation to cut taxes for companies who bring jobs back to the United States and end a tax break that rewards companies for moving jobs overseas when he voted to support the Bring Jobs Home Act. Although the measure garnered a majority of votes, it did not receive the required 60 votes needed to pass.
"We need our tax code to encourage job creation in the United States and stop rewarding companies for shipping jobs overseas," said Sen. Franken, who was one of six cosponsors of the legislation. "I've heard from people all over Minnesota who support this bill because their families have been hurt when jobs were shipped overseas. Today we had the opportunity to end a tax break that supports the outsourcing of jobs by passing legislation to bring jobs back home and keep them here-something we desperately need to do to get our economy back on track. People in Minnesota and across the country are looking for leadership that creates jobs and I am incredibly disappointed that this bill was blocked."
Franken said the bill would have encouraged a trend that in the last few years has seen major manufacturers like Ford and Caterpillar bring jobs back to the United States from Japan, Mexico, and China.
The bill was introduced by Sens. Debbie Stabenow (D-Mich.), Sherrod Brown (D-Ohio), and Sheldon Whitehouse (D-R.I.) and cosponsored by Sen. Franken.
The Bring Jobs Home Act would:
Create a new tax credit to provide an incentive for companies to move jobs and business activity from another country back to America. It would grant companies a tax credit for up to 20% of insourcing expenses incurred for eliminating a business located outside the U.S. and relocating it within the U.S. In order to qualify for the credit, a company must increase the number of full-time workers it employs in the U.S.
End a tax deduction for companies that outsource jobs and business activity. Currently, 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. The legislation would keep this deduction in place for companies that bring jobs and business activity back home, but businesses would no longer be able to get the tax benefit for relocating overseas.