SCHUMER PUSHES LEGISLATION TO HELP BRING OUTSOURCED JOBS BACK TO NY- 72 UPSTATE NEW YORK COMPANIES THAT HAVE OUTSOURCED JOBS WOULD BE ELIGIBLE
Schumer-Backed Bill Would Provide 20% Tax Credit For Businesses That Bring Outsourced Jobs Back to U.S. & Closes Tax Loopholes For Companies That Ship Jobs Overseas
Regional Report Details Companies That Have Outsourced Jobs That Would Be Eligible To Bring Jobs Back To Upstate New York
Schumer Revealed 15 Companies in Western NY, 11 in Hudson Valley, 7 in Southern Tier, 11 in Central New York Would Be Eligible
On Wednesday, on a conference call with reporters, U.S. Senator Charles E. Schumer discussed his push for legislation designed to incentivize businesses that have shipped jobs overseas to bring those jobs back to the U.S. Under current law, there are few tax incentives for American employers to bring offshore jobs and investments back into the United States. During the recession, many American companies, including some in New York, decided to move jobs overseas for financial reasons. This legislation will incentivize them to move jobs back home, ends tax perks currently provided to companies that move jobs overseas, and push companies not currently based in New York to move jobs to America.
"There is no more important issue right now than jobs, and the Bring Jobs Home Act can do just that for Upstate New York by rewarding the companies that return jobs to America - and by reversing the incentives that encourage companies to ship jobs overseas," said Senator Schumer. "This legislation creates a carrot-and-stick approach that gives incentives to companies that bring jobs back to Upstate from abroad, and helps prevent future jobs from being shipped overseas."
The Bring Jobs Home Act, sponsored by Senator Debbie Stabenow (D-MI) and which Senator Schumer co-sponsors, would stop tax breaks from going to companies that ship American jobs overseas, and provides a new tax incentive for businesses that bring outsourced jobs back to the U.S. Specifically, the bill includes a 20 percent tax credit that any business can use against their overall tax liability for costs associated with moving a production line, trade, or business located outside the country, back to the U.S. The legislation also closes loopholes for shipping jobs overseas by disallowing the deduction companies can currently take for the expenses associated with outsourcing.
In April 2012, The Boston Consulting Group released a recent survey of executives showing that 37 percent of all companies surveyed, and 50 percent of companies with revenues over $10 billion, were planning to, or actively considering, moving manufacturing to the United States from China. These companies are actively looking to move to the United States because 9 in 10 believe that costs in China are on the rise and 7 in 10 believe that their operations in China turned out to be more costly than they had originally anticipated.
On the call, Senator Schumer presented data that shows the number of businesses by region that have shipped jobs overseas. Here is how the data breaks down regionally:
· There are 6 companies from the Capitol Region that have outsourced jobs overseas that would be eligible for the 20% tax incentive provided in the Bring Jobs Home Act.
· There are 15 companies in Western New York that have outsourced jobs overseas that would be eligible for the 20% tax incentive provided in the Bring Jobs Home Act.
· There are 11 companies in Central New York that have outsourced jobs overseas that would be eligible for the 20% tax incentive provided in the Bring Jobs Home Act.
· There are 16 companies in the Rochester-Finger Lakes area that have outsourced jobs overseas that would be eligible for the 20% tax incentive provided in the Bring Jobs Home Act.
· There are 7 companies in the Southern Tier that have outsourced jobs overseas that would be eligible for the 20% tax incentive provided in the Bring Jobs Home Act.
· There are 6 companies in the North Country that have outsourced jobs overseas that would be eligible for the 20% tax incentive provided in the Bring Jobs Home Act.
· There are 11 companies in the Hudson Valley that have outsourced jobs overseas that would be eligible for the 20% tax incentive provided in the Bring Jobs Home Act.