Statement Of Senator Patrick Leahy On Bringing Jobs Back To America
Mr. President, I strongly support the Creating American Jobs and Ending Offshoring Act. These clearly justified reforms will close wasteful tax loopholes for firms that move jobs overseas and provide real incentives for firms to bring jobs back to the United States. I am proud to join Senators Dick Durbin, Harry Reid, Byron Dorgan, Barbara Boxer, Chuck Schumer, Sherrod Brown, and Sheldon Whitehouse in cosponsoring this bill.
For the past two decades our country has witnessed a disturbing trend towards outsourcing American jobs abroad. What began as a way for domestic manufacturers to cut labor costs has blown into a full-fledged sprint by some U.S. manufacturing and service companies to move as much production offshore as possible.
The devastating effects of global offshoring have hit large, manufacturing states like Ohio, Michigan, Indiana, and California with particular hurt, but smaller states like Vermont are not immune to the global realities of corporate outsourcing and consolidation. Unfortunately, there is quite a list of companies in recent years that have either left our state or gone out of business entirely because they moved jobs overseas or were squeezed out of the market by competitors using cheap, foreign labor.
That is why the Senate must move forward with considering the Creating American Jobs and Ending Offshoring Act.
First, the bill will eliminate the perverse tax subsidies that U.S. taxpayers provide to firms that move facilities offshore. Specifically, it prohibits a firm from taking any deduction, loss or credit for amounts paid in connection with reducing or ending the operation of a trade or business in the United States and starting or expanding a similar trade or business overseas.
Second, the bill will close the tax loophole that rewards U.S. firms that move their production overseas and then turn around and import those now foreign-made products back to the United States for sale. Not only will this help keep good manufacturing jobs here at home, it will save American taxpayers more than $15 billion in revenue over the next decade.
Finally, to encourage businesses to create jobs in the United States, the bill will provide businesses with payroll tax relief for each new job that they bring back onshore.
During these trying economic times, too many Vermonters are struggling to find goods jobs and pay their bills. The economic collapse came swiftly, and we have all seen that there are no quick fixes to turn around our economic troubles. We staved off greater economic disaster with an essential economic rescue plan, and we have tried to jumpstart the economy with a bold economic recovery plan. But employment opportunities here at home are hampered when employers push more and more jobs overseas.
Last year Congress helped lay the groundwork for a renewed and vibrant economy by enacting tax relief for working families and businesses and making needed investments in broadband deployment, job training, electrical smart grids, water and transportation infrastructure, better schools, housing, first responders, and new energy sources. We need to ensure that these important investments by U.S. taxpayers benefit businesses and workers here home.
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Press ContactDavid Carle: 202-224-3693
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