“Most folks agree that paying companies to relocate American jobs overseas makes no sense,” said Senator Jack Reed, about Senate Bill 2569, the Bring Jobs Home Act. It would end a tax loophole for compensates companies for moving expenses when they move jobs overseas and instead reward companies that bring jobs back stateside.
But some Senate Republicans didn’t think this made sense when Reed co-sponsored the bill in 2012. In July of that year it was killed by a GOP filibuster in spite having four Republican backers. But Senators Reed and Sheldon Whitehouse are hoping it can pass this summer, free of the politics of a presidential campaign.
“Now, the Senate has a chance to close this loophole and open a new chapter of bipartisan, commonsense cooperation,” Reed said in a statement. “This kind of straight-forward legislation deserves a swift up or down vote. I hope we can get bipartisan cooperation to improve our economy and give American-based companies and workers a competitive advantage in the global marketplace.”
Here’s how Reed’s office described the bill:
The Bring Jobs Home Act will close a tax loophole that pays the moving expense of companies which send jobs overseas. Under the current tax code, the cost of moving personnel and components of a company to a new location is defined as a business expense that qualifies for a tax deduction. The Reed-backed bill will keep this deduction in place for companies that bring jobs and business activity back to the United States, but businesses would no longer be able to claim a tax benefit for shipping jobs overseas. The bill also creates a new tax cut to provide an incentive for companies to bring jobs back to America. Specifically, it would allow companies to qualify for a tax credit equal to 20% of the cost associated with bringing jobs back to the United States.
The Senate voted today to re-open debate on the bill. Reed, Whitehouse and their allies now have 30 hours to muster up 60 Senate votes to avoid another filibuster.
Until then, your tax dollars are helping companies leave the country.
“From the Old Slater Mill in Pawtucket to modern submarine production at Quonset Point, the manufacturing sector has always been central to Rhode Island’s economy,” Whitehouse said in a statement. “It’s time to stop rewarding companies for shipping jobs overseas and start rewarding them for bringing jobs back home. Rhode Island taxpayers shouldn’t be footing the bill to help create jobs in other countries.”