The Bring Jobs Home Act () is a bill that would amend the Internal Revenue Code to grant business taxpayers a tax credit for up to 20% of

insourcing Outsourcing is an agreement in which one company hires another company to be responsible for a planned or existing activity which otherwise is or could be carried out internally, i.e. in-house, and sometimes involves transferring employees and ...

expenses incurred for eliminating a business located outside the United States and relocating it within the United States, and deny a tax deduction for outsourcing expenses incurred in relocating a U.S. business outside the United States. The bill was introduced into the

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during the

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Background

American companies can currently deduct the costs of moving facilities overseas from their taxes, something that would change under this bill. The text of S. 2569 is identical to a bill written by the Senator Stabenow that failed in the

112th United States Congress The 112th United States Congress was a meeting of the legislative branch of the United States federal government, from January 3, 2011, until January 3, 2013. It convened in Washington, D.C. on January 3, 2011, and ended on January 3, 2013, 17 ...

Provisions of the bill

''This summary is based largely on the summary provided by the

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, a

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source.'' The Bring Jobs Home Act would amend the Internal Revenue Code to: (1) grant business taxpayers a tax credit for up to 20% of

expenses incurred for eliminating a business located outside the United States and relocating it within the United States, and (2) deny a tax deduction for outsourcing expenses incurred in relocating a U.S. business outside the United States. The bill would require an increase in the taxpayer's employment of full-time employees in the United States in order to claim the tax credit for insourcing expenses.

Procedural history

The Bring Jobs Home Act was introduced into the

on July 8, 2014 by Sen. John Walsh (D-MT). Senator

Debbie Stabenow Deborah Ann Stabenow ( ; née Greer, born April 29, 1950) is an American politician serving as the senior United States senator from Michigan, a seat she has held since 2001. A member of the Democratic Party, she became the state's first female ...

(D-MI) was an initial co-sponsor. On July 23, 2014, the Senate voted to advance the bill for consideration in a vote of 93-7.

Debate and discussion

Senator Stabenow said that "we've got to make sure the tax code reflects the right values and policies." Senator Walsh is considered "one of the most vulnerable incumbents in this election cycle." Walsh has alleged that his opponent was involved in outsourcing. According to Walsh, "it is outrageous that Americans are forced to subsidize corporate decisions to ship jobs overseas." Senator

Harry Reid Harry Mason Reid Jr. (; December 2, 1939 – December 28, 2021) was an American lawyer and politician who served as a United States senator from Nevada from 1987 to 2017. He led the Senate Democratic Caucus from 2005 to 2017 and was the Sena ...

(D-NV) said that the bill "would end senseless tax breaks for outsourcers" and "would end the absurd practice of American taxpayers bankrolling the outsourcing of their very own jobs." Senate Minority Leader Mitch McConnell (R-KY) accused the Democrats of only being interested in politics and not in actually encouraging companies to stay in the United States. McConnell pointed to reducing corporate tax rates as a step that would keep businesses in the United States that the Democrats have been unwilling to take. According to McConnell, the bill is "designed for campaign rhetoric and failure - not to create jobs here in the U.S." The

Joint Committee on Taxation The Joint Committee on Taxation (JCT) is a Committee of the U.S. Congress established under the Internal Revenue Code at . Structure The Joint Committee is composed of ten Members: five from the Senate Finance Committee and five from the House ...

reported that the bill would result in the government losing $214 million in revenue over 10 years. Howard Cleckman on ''

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'' criticized the bill as a "message bill" that "Democratic sponsors have no interest in making" law because "they merely see it as a way to boost the party's Senate candidates in part by forcing Republicans against something that sounds like a good idea." Cleckman argued that major U.S. firms already pay such low taxes, that any tax credits available for bringing business units back to the United States would be meaningless. He also argues that the bill won't do anything to increasing hiring in the United States because the company can claim the credit with as few as one new job.

References

External links