Thursday, July 19, 2012
US: Republicans block Barack Obama's measure to curb job outsourcing
Washington: Republican lawmakers in the United States Senate have blocked a legislation backed by President Barack Obama that would cease tax incentives to the Americans companies that outsource jobs overseas. The bill fell four votes short of the 60 needed to bring it to debate, with 42 voting against it.
Immediately thereafter the White House accused Republicans of "playing politics and coming in the way of jobs creation in the United States."
During the presidential campaign season, job creation is at the top of the agenda of Democrats and they are blaming outsourcing as a big contributor to the high unemployment rate in the country.
"Unfortunately, Republicans in Congress blocked this proposal from moving forward. Rather than encouraging companies to bring jobs back to our shores, they chose to play politics and block measures that will create jobs and strengthen the middle class," the White House Press Secretary, Jay Carney, said.
Senate Majority Leader, Harry Reid, said in the past decade, American companies outsourced almost 2.5 million jobs.
"Today, Republicans blocked the Senate from debating a common-sense bill that would provide a new tax incentive to create more jobs here at home, and eliminate subsidies for companies that are shipping American jobs overseas," he alleged.
Once again today, Republican Senators voted to protect companies that ship American jobs overseas, alleged Democratic leader, Nancy Pelosi.
"Senator Debbie Stabenow's Bring Jobs Home Act is simple: it ends tax breaks for companies that ship jobs overseas and cuts taxes for businesses to bring jobs back to America. Yet Republicans wouldn't even allow it to come to the floor for an up-or-down vote," Pelosi alleged.
Senator Frank Lautenberg said that it is shocking that Republicans would vote to protect tax breaks for companies that ship American jobs overseas. "Once again, Republicans have shown their true priority doling out tax breaks to special interests rather than creating jobs for middle class workers here at home," he said.
Under current law, the cost of moving personnel and components of a company to a new location including locations overseas is defined as a business expense that qualifies for a tax deduction.
This legislation would eliminate companies' ability to claim a tax deduction for the costs of moving their business overseas, and would provide a new tax credit equal to 20 per cent of the costs companies incur in moving back to the United States, Lautenberg said.
The Bring Jobs Home Act would provide a 20 per cent tax break for the costs of moving jobs back to the United States and would rescind business expense deductions available to companies that are associated with the cost of moving operations overseas.