The IAM is urging the Senate’s support of a bill that would stop rewarding multinational companies that offshore jobs. The “Bring Jobs Home Act” would eliminate the tax deduction U.S. companies receive for the costs associated with offshoring.
“For far too long our trade and tax policies have worked for the benefit of multinational corporations that pay lip service to the importance of U.S. jobs,” wrote IAM International President Tom Buffenbarger in a recent letter to Sen. Richard Shelby (R-AL). “In just the last decade, the U.S. has seen the loss of six million manufacturing jobs as corporate profits have soared. At a time of continued high unemployment, Congress must take action to foster domestic job growth by ending the tax incentives for offshoring and by rewarding companies that bring jobs home. Working Americans understand this common sense logic, as do our global competitors.”
Under the “Bring Jobs Home Act,” introduced by Sen. Debbie Stabenow (D-MI), companies would no longer be able to use the U.S. tax code to subsidize the export of American manufacturing jobs to countries with little or no labor protections or regard for the environment. The bill would also encourage insourcing and the growth of American jobs by rewarding businesses that bring jobs back to the U.S. with a 20 percent tax credit for the costs associated with moving operations located outside the country back to the United States.
“The Bring Jobs Home Act begins to bring sanity to our tax policies and, coupled with a fair trade agenda that ends currency manipulation and increases enforcement, will be a real engine of job creation,” wrote Buffenbarger.
Click here to read the full letter.