Baldwin Welcomes Republican Support for Senate Democrats’ Legislation to Close a Corporate Tax Loophole and #BringJobsHome
Washington D.C. – U.S. Senator Tammy Baldwin will vote today to support the Bring Jobs Home Act, legislation which closes a corporate tax loophole and helps bring American jobs back to the U.S.
“I have long believed that we need to reward American hard work and invest in economic growth here at home. Our tax policy and economic development efforts should not provide tax breaks for shipping jobs overseas, they should support job creation in Wisconsin,” said Baldwin. “Wisconsin’s economy continues to lag behind our Midwest neighbors and I support this legislation because it encourages companies to invest in the United States and bring jobs back home.”
Over the last 10 years, 2.4 million jobs were shipped overseas and American taxpayers were asked to foot the bill for the move. The Bring Jobs Home Act closes a tax loophole that currently rewards companies for moving jobs abroad. Under existing law, businesses can deduct the cost of moving personnel and other business components to other countries when filing their taxes. This bill would change the law so that moving jobs or other business components overseas does not qualify for this deduction, ending subsidies for companies that move jobs overseas.
The bill would also provide a tax credit for companies that move jobs and business activities from another country back to America. By allowing companies to qualify for a tax credit equal to 20 percent of the cost associated with bringing jobs and business activities to the U.S., the Bring Jobs Home Act provides a substantial incentive for these companies to move back home.
In the last few years, manufacturers like Ford, Caterpillar, and GE have announced major investments in the U.S. – bringing jobs back from places like Japan, Mexico, and China. In Wisconsin, Master Lock in Milwaukee, Generac Power Systems in Whitewater, InPro Corp of Muskego, and The Vollrath Company in Sheboygan have all brought production – and jobs - back to Wisconsin. Smaller manufacturers are also taking advantage of America’s skilled and ready workforce. Over 80 percent of companies bringing jobs back to the U.S. have $200 million or less in sales.
The Bring Jobs Home Act is strongly supported by the AFL-CIO, UAW, USW, CWA, AFSCME, SEIU, Teamsters, and the Machinists.
In addition, this week Governor Scott Walker’s supporters promoted the U.S. Senate Democrats’ effort to pass the Bring Jobs Home Act despite opposition from U.S. Senate Republicans.
“I welcome Governor Walker’s support for legislation advanced by Senate Democrats. Today’s vote in the U.S. Senate provides a great opportunity for Governor Walker to call on his fellow Republicans to end their obstruction in the Senate and support helping American businesses bring jobs back to the United States,” Baldwin said.