Senate Rejects Offshoring Tax Bill

Tax and Accounting

In yet another doomed effort motivated by campaign politics, supporters failed to muster the 60 Senate votes needed to consider legislation that 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.  On a 56 to 42 vote, four Republicans—Susan Collins (ME), Olympia Snowe (ME), Scott Brown (MA) and Dean Heller (NV) joined all Democrats in voting for the "Bring Jobs Home Act" (S. 3364).  Speaking in support of the bill, Senate Majority Leader Harry Reid (D-NV) acknowledged that, "in the last few years, major manufacturers . . . have brought jobs back to the United States from Japan, Mexico, and China.  Smaller manufacturers such as Master Lock have moved facilities home as well.  Congress must do everything in its power to encourage this trend."  At a later news conference, Reid and other Democratic supporters of the bill predicted that outsourcing will be a major focus in the fall campaign.