TOO MANY NEW YORK COMPANIES HAVE SENT JOBS OVERSEAS & WE MUST BRING THEM BACK – SCHUMER PUSHES TAX CHANGE THAT WOULD ENCOURAGE OVER 139 COMPANIES TO BRING OVER 13,000 OUTSOURCED JOBS BACK TO NY & MAKE IT HARDER FOR COMPANIES TO SEND JOBS OVERSEAS IN FUTURE
Schumer-Backed Bill Would Provide 20% Tax Credit for Businesses That Bring
Outsourced Jobs Back to U.S. & Closes Tax Loopholes That
Companies Can Receive for Shipping Jobs Overseas
In Upstate NY Alone, From 2008-2012, 102 Companies Sent Over 12,000 Jobs
Overseas, A Critical Blow To the Upstate Economy – Bill Would Encourage
These Companies To Bring Jobs Back & Limit Others From Sending Jobs
Overseas in Years to Come
Schumer Reveals 22 Companies in Western NY, 11 in Hudson Valley, 12 in
Southern Tier, 11 in Capital Region, 17 in Rochester-Finger Lakes, 7 in
North Country, 22 in Central New York & 14 on Long Island Have Shipped
Jobs Overseas & Would Be Encouraged To Bring Jobs Back
Earlier this week, U.S. Senator Charles E. Schumer announced he is pushing a new tax change that would end tax deductions for companies that move jobs overseas and incentivize New York businesses that have shipped jobs abroad to bring them back. Schumer explained that under current law, there are few tax incentives for American employers to bring offshore jobs and investments back into the United States. Over the past several years, many American companies – including 139 in New York State – decided to outsource jobs, which had a devastating effect on job growth. The tax change Schumer proposed would incentivize these companies, and many others, to bring outsourced jobs back to New York and would make it less attractive for companies to ship jobs overseas by ending tax perks currently provided to companies that outsource jobs.
“We should be doing everything in our power to encourage job growth at home and discourage companies from shipping good-paying New York jobs abroad,” said Schumer. “Unfortunately, our current tax code includes incentives that make outsourcing a much more attractive option for companies than it should be. With our economy finally beginning to recover after years of uncertainty, it is time to bring jobs back to New York that many companies sent abroad during the downturn and to institute wholesale changes that make it less likely for jobs to be outsourced again. I always fight tooth and nail for every single job in New York, and I am pushing for this tax change because I know it will lead to more ‘We are Hiring’ signs cropping up across the state.”
Schumer is an original co-sponsor of The Bring Jobs Home Act, a bill that was reintroduced by Senator John E. Walsh (D-MT) last week. The Bring Jobs Home Act would end tax breaks for companies sending 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 could use to reduce their overall tax liability for costs associated with moving a production line, trade, or business located outside the country, back into the U.S. However, a company could only receive this tax if the company’s full time U.S. employment increased from the prior year. The legislation would also close loopholes for shipping jobs overseas by ending the deduction companies can currently take for business expenses associated with outsourcing.
According to a 2013 survey by The Boston Consulting Group, 54 percent of American manufacturers with sales greater than $1 billion who produce goods in China were planning to bring production back to the United States. This figure represents a sharp increase from Boston Consulting Group’s 2012 survey, which indicated only 37 percent of manufacturing companies were considering bringing production and jobs back to the U.S. from China. Schumer said this clearly shows that there is real interest in bringing jobs back, which is why a tax change is needed to get these companies to follow through on their plans.
On the call, Schumer presented data showing the number of businesses by region that have shipped jobs overseas between 2008 and 2013. Here is how the data breaks down regionally:
· There are at least 11 companies in the Capital Region that have outsourced 1,308 jobs overseas.
· There are at least 22 companies in the Western New York that have outsourced 2,132 jobs overseas.
· There are at least 22 companies in Central New York that have outsourced 1,609 jobs overseas.
· There are at least 17 companies in the Rochester-Finger Lakes area that have outsourced 1,504 jobs overseas.
· There are at least 12 companies in the Southern Tier that have outsourced 1,178 jobs overseas.
· There are at least 7 companies in the North Country that have outsourced 1,158 jobs overseas.
· There are at least 11 companies in the Hudson Valley that have outsourced 2,369 jobs overseas.
· There are at least 14 companies on Long Island that have outsourced 302 jobs overseas.
Since there is no comprehensive data available for the number of jobs outsourced from New York State, the numbers cited above are likely to be smaller than the total number of companies that outsourced in these regions. The numbers cited represent only companies that were certified under Trade Adjustment Assistance (TAA) as having directly offshored their production and does not incorporate companies that did not apply or were denied TAA assistance. The total number of companies in New York that outsourced from 2008 to 2012 is likely to be significantly higher than 139. According to a report by Forrester Research, for example, more than three million service-sector jobs nationwide may have been outsourced since 2003.
Schumer noted that over the past few years, many large manufacturers, including New York’s own GE, as well as many smaller manufacturers have announced they are bringing jobs back to the U.S. and New York from places like Japan, Mexico, and China. Schumer said the goal of The Bring Jobs Home Act is to encourage more companies to bring jobs back, and then make it more attractive to keep those jobs in the U.S. permanently once they are here.