CONTINUEThis site uses cookies. By continuing to browse this site you are agreeing to our use of cookies. Find out more.
  1. Front Page
  2. News By Topic
  3. Democrats Introduce In-Sourcing Bill Into US Congress

Democrats Introduce In-Sourcing Bill Into US Congress

by Mile Godfrey, Tax-News.com, Washington

15 May 2012


Democrats in the Senate and House of Representatives have introduced into the United States Congress the main tax measure out of President Barack Obama’s recently-announced “To Do List”, to provide a tax credit for companies over the cost of moving operations back to the country.

The Bring Jobs Home Act would create a tax incentive for companies to move jobs and business activity from another country back to America. Specifically, the initiative would allow companies to qualify for an additional tax credit against their corporate income tax, equal to 20% of the cost associated with transferring operations back to the United States.

That tax credit would be paid for by ending the tax break that allows companies to deduct expenses associated with outsourcing operations overseas. Currently, the cost of moving a company to a new location is defined as a business expense that qualifies for a tax deduction. The proposed legislation would keep this deduction in place for companies that bring jobs and business activity back to the US, but businesses would no longer be able to get a tax benefit for moving operations overseas.

The Act was introduced into the Senate by Debbie Stabenow (D – Michigan), Chair of the Senate Agriculture Committee and a member of the Senate Energy, Finance, and Budget Committees, and into the House of Representatives by Bill Pascrell (D – New Jersey), a member of the House Ways and Means and Budget Committees.

"We need to be exporting our products, not our jobs," Stabenow said. "Instead of letting companies use tax loopholes that help them ship jobs overseas, we need to be cutting taxes for companies that create jobs in America. It's time to stop rewarding companies that send jobs to other countries and instead support businesses creating jobs here at home."

"Passing the Bring Jobs Home Act will stop our tax code from providing corporate welfare by closing the loopholes that encourage outsourcing, and give incentives to businesses to reverse the flow of jobs back home," Pascrell added. "The light at the end of the economic recovery is powered by manufacturing; we cannot stand around while our manufacturing base continues to erode.”

TAGS: tax | business | law | corporation tax | tax credits | manufacturing | legislation | United States | tax breaks

To see today's news, click here.

 















Tax-News Reviews

Cyprus Review

A review and forecast of Cyprus's international business, legal and investment climate.

Visit Cyprus Review »

Malta Review

A review and forecast of Malta's international business, legal and investment climate.

Visit Malta Review »

Jersey Review

A review and forecast of Jersey's international business, legal and investment climate.

Visit Jersey Review »

Budget Review

A review of the latest budget news and government financial statements from around the world.

Visit Budget Review »



Stay Updated

Please enter your email address to join the Tax-News.com mailing list. View previous newsletters.

By subscribing to our newsletter service, you agree to our Terms and Conditions and Privacy Policy.


To manage your mailing list preferences, please click here »