Stabenow, Michigan Business and Labor Leaders Discuss Her Bring Jobs Home Act
Senate Vote on Measure Expected this Week Stabenows Initiative Would End Tax Giveaway That Rewards Companies that Send Jobs Overseas, Cut Taxes for U.S. Companies that Bring Jobs Back to AmericaWednesday, July 18, 2012
With the Senate poised to vote on U.S. Senator Debbie Stabenow's Bring Jobs Home Act, which ends tax breaks for companies that ship jobs overseas and cuts taxes for businesses to bring jobs back to America, Stabenow today joined with Michigan business and labor leaders to discuss her legislation. Stabenow's Bring Jobs Home Act will end a tax giveaway that rewards companies that ship jobs overseas, and also provide a tax cut for U.S. companies that move jobs and business activity back to America from another country.
Stabenow was joined by Tim Bryan, CEO of GalaxE.Solutions, a global IT custom systems developer that opened a development center in downtown Detroit in 2010. GalaxE.Solutions is committed to bringing IT jobs back to the U.S. through programs such as "Outsource to Detroit," a campaign focused on building a healthcare IT hub in downtown Detroit. GalaxE.Solutions has already hired more than 150 IT professionals with more than 200 immediate openings. Stabenow announced her Bring Jobs Home Act at GalaxE.Solutions earlier this year.
Stabenow was also joined by Rory Gamble, Director for UAW Region 1A, who praised Stabenow for her leadership and her commitment to Michigan manufacturing and Michigan workers. Gamble discussed how American automakers are bringing jobs back from other countries to Southeast Michigan.
Senator Stabenow said: "We need to be exporting our products, not our jobs. Instead of giving tax giveaways to companies that ship jobs overseas, we need to be cutting taxes for U.S. companies that create jobs in America. Michigan is home to the hardest-working, best-skilled workforce in the world, and our entrepreneurs are turning innovative ideas into new job-creating businesses. My initiative will help bring new jobs to Michigan by providing an incentive for American businesses to bring jobs home, and it will stop rewarding companies that outsource."
Tim Bryan, Chairman and CEO of GalaxE.Solutions, said: "It is quite rewarding to see our message of job repatriation resonating at the highest levels of business and government in this country. A monumental shift is taking place that needs to be acted upon now. Senator Stabenow's initiative is poised to be a game changer in putting Americans back to work."
Rory Gamble, Director, UAW Region 1A, said: "I want to thank Senator Stabenow for her leadership and commitment to American manufacturing and bringing jobs back to Michigan. While we've seen some good news with our automakers bringing work back from other countries to Southeast Michigan, we recognize that we still have a ways to go to get America back to work. It's time for Congress to pass Senator Stabenow's legislation to fix the tax code that currently rewards companies for shipping jobs overseas."
Economists have estimated that while jobs in the service, farming, construction, transportation and some other sectors are not threatened by outsourcing, nearly 700,000 Michigan jobs in other sectors are offshorable. Manufacturing jobs are especially vulnerable, with over 80% easily offshorable. In total, estimates show around 35% of all Michigan jobs are have the potential to be sent overseas.
Senator Stabenow's Bring Jobs Home Act:
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 the U.S.
Creates a new tax cut to encourage U.S. companies to bring jobs home. Specifically, the bill will allow U.S. companies to qualify for a tax credit equal to 20% of the cost associated with bringing jobs and business activity back to the United States. The company will be able to apply the 20% tax credit against its corporate income tax. Companies bringing jobs home would then still qualify for the deduction currently available for the costs associated with moving personnel and business activity, as well as the new 20% tax credit (i.e., the 20% tax credit is in addition to the current deduction, not instead of).
Senator Stabenow has long championed efforts to ensure U.S. businesses and workers can become more globally competitive and create more jobs in America. Last year, Senator Stabenow introduced her American Competitiveness Plan to crack down on other countries' trade violations. One of the main provisions of Stabenow's Plan, which called for a trade enforcement unit to hold countries that violate trade laws accountable, was created by President Obama earlier this year. Other provisions of Stabenow's plan include a bill to crackdown on China's currency manipulation (which passed the Senate last year with overwhelming bipartisan support) and provisions to strengthen penalties for foreign companies who steal American technology and intellectual property.