Senator Stabenow Measure to Stop Tax Breaks for Companies that Send Jobs Overseas Included in Proposal to Avert Sequester
A measure authored by U.S. Senator Debbie Stabenow to stop tax breaks for companies that send jobs overseas is expected to be voted on tomorrow as part of a balanced proposal to avert job-killing, across-the-board cuts. A major portion of Stabenow's Bring Jobs Home Act is included in the Senate package to ward off the so-called sequester, a series of deep cuts that both parties have said are irresponsible and will hurt our economy if they take effect. The sequester will kick in on March 1 if Congress does not act.
"Both parties must come together to find common sense ways to cut things that don't make sense and promote job growth. Ending tax breaks for companies that ship jobs overseas reduces the deficit and helps keep jobs in America," Stabenow said. "Congress needs to support targeted measures like this to reduce the deficit, rather than indiscriminate, across-the-board cuts that slash job creation, education, support for retirees and other top priorities."
Sen. Stabenow's Bring Jobs Home Act was supported by a majority of Senators last year, including support from some Republicans. But while the initiative was supported 56-42, the bill was blocked by a Republican filibuster, which meant the legislation required 60 votes to move forward.
Sen. Stabenow's provision ends a tax break for U.S. companies that outsource jobs and business activity. Right now, the cost of moving personnel and company operations to a new location is defined as a business expense that qualifies for a tax deduction. Senator Stabenow's legislation would no longer allow this deduction for companies that move jobs and business activity outside of America. However, the deduction is maintained for businesses that move jobs back home (or move within the U.S.).