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Teeing up what will be a major campaign issue this fall, Senate Majority Leader Harry Reid (D-NV) indicated this week that he is likely to call up the Bring Jobs Home Act (S. 2884) for a vote as soon as the week of July 9th. The bill would end a tax deduction for companies that offshore jobs and give companies a 20 percent tax credit for costs associated with bringing jobs that are now overseas back to the United States. Specifically, no tax deduction would be allowed for any specified offshoring expense paid in connection with the elimination of any business unit located within the United States. Nor would it be available for any eligible expense paid in connection with the establishment of any business unit located outside the United States if such establishment constitutes the relocation of a business unit that is eliminated. In order to claim the 20 percent tax credit, employers would have to increase the number of full-time employees in the United States. The AFL-CIO strongly supports the bill and plans to stage rallies and demonstrations in favor of the bill.
Daniel V. Yager
Senior Advisor, Workplace Policy, HR Policy Association