by Dan Crawford
I haven’t the time to check it out, but here is a note and link to a Senate bill on offshoring:
The Senate is scheduled to vote TODAY on the Creating American Jobs and Ending Offshoring Act (S. 3816) to set a time limit for debate and cut off a filibuster.
The bill has three main components:
To encourage businesses to create jobs in the United States, it provides businesses with relief from the employer share of the Social Security payroll tax on wages paid to new U.S. employees performing services in the United States. To be eligible, businesses must certify that the U.S. employee is replacing an employee who had been performing similar duties overseas.
The bill eliminates subsidies U.S. taxpayers provide to firms that move facilities offshore by prohibiting a firm from taking any deduction, loss or credit for amounts paid in connection with reducing or ending the operation of a trade or business in the United States and starting or expanding a similar trade or business overseas.
It also ends the federal tax subsidy that rewards U.S. firms that move their production overseas. Under current law, U.S. companies can defer paying U.S. tax on income earned by their foreign subsidiaries until that income is brought back to the United States. This is known as “deferral.” Deferral has the effect of putting these firms at a competitive advantage over U.S. firms that hire U.S. workers to make products in the United States.