United States:
Senate Advances Insourcing Bill
24 July 2014
by
Littler Mendelson
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The Senate has voted overwhelmingly in favor of advancing a bill
that would provide a tax incentive to employers that move their
overseas jobs back to the United States, and eliminate a tax credit
for moving operations outside the country. The chamber voted
93-7 to send the Bring Jobs Home Act (S. 2569) to the Senate
floor for consideration.
Introduced by Sen. John Walsh (D-MT), the bill would disallow
companies from classifying costs associated with moving personnel
and equipment from the U.S. as a business expense eligible for a
tax deduction. The measure would instead allow employers to
qualify for a 20% tax credit for eligible expenses incurred in
relocating foreign business units back to the U.S.
In a press
release issued by Sen. Debbie Stabenow
(D-MI), who co-authored the legislation, she states:
Over the past decade, 2.4 million
American jobs have been shipped overseas, and approximately 21.5
million more jobs are at risk being moved overseas today. Michigan
alone could lose an additional 737,000 jobs to offshoring. The
Bring Jobs Home Act would strengthen manufacturing and other
industrial sectors by encouraging companies to support American
workers and move jobs back to Michigan and states across the
country.
The measure will next be debated by the full Senate before a
vote is taken.
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