Like Countable?

Install the App
TRY NOW

house Bill H.R. 2005

Should Tax Breaks for Corporations That “Offshore” Jobs be Eliminated?

Argument in favor

There’s no reason for the federal government to give tax breaks to businesses that ship American jobs overseas. This bill would level the playing field for small businesses while generating some modest, but not inconsequential, tax revenue for the federal government.

Kodiwodi's Opinion
···
06/01/2017
Perhaps I'm simple but why would we give a tax break to big corporations that then send jobs overseas so they may get another break in labor costs? How about we give the break to only small businesses who don't offshore and close the loophole for offshoring once and for all. Remember, America first?
Like (219)
Follow
Share
Laura's Opinion
···
06/01/2017
The best way to encourage employers to keep jobs in the US is to eliminate tax cuts received by outsourcing. This is a no-brainer and so obvious that it shouldn't have to be said.
Like (128)
Follow
Share
···
06/01/2017
Stop GIVING Corporate Welfare and Corporate Entitlements. This is what has lead America into the current economic crisis it is in and helped create the deficit it is in.
Like (114)
Follow
Share

Argument opposed

This bill would ultimately punish American businesses and make it less likely that they’d be able to expand their U.S. operations because of increased taxes. Besides, an estimated $2 billion per year isn’t a significant amount of tax revenue in the grand scheme of things.

Coty's Opinion
···
06/01/2017
Should you punish somebody for moving their production from Massachusetts to New Hampshire because it's more economically feasible for them to run their business because of the heavy-handed meddling of government? Absolutely not. What we should do is incentivize companies to keep production in America by lowering taxes, not threatening them with even more burdensome taxes, laws, and regulations. This is exactly why they're fleeing in the first place, we are driving away business so that only the largest companies can survive. Who do you think lobbies for these regulations anyways?
Like (21)
Follow
Share
Loraki's Opinion
···
06/06/2017
I certainly share everyone's resentment towards companies that off-shore jobs! However, you have to ask yourself WHY companies do that! There are several factors driving this exodus of jobs: (1) government regulations; (2) high corporate taxes; (3) union demands; and (4) the constant push by the liberals for a higher minimum wage and more and more employee benefits that drive up the cost of running a business! STOP THESE JOB-KILLING PRACTICES AND JUST WATCH THE COMPANIES COME POURING BACK INTO THE GOOD OLE U.S.A.!!! Oh, I forgot one important thing: STOP GIVING WHAT JOBS THERE ARE IN AMERICA TO ILLEGAL ALIENS AND FOREIGNERS WITH WORKERS' VISAS!!!
Like (19)
Follow
Share
DannyBDolan's Opinion
···
06/01/2017
Just cut out all of the complicated rules and exemptions that are intended to control how people do business. Flat tax or Fair tax.
Like (16)
Follow
Share

bill Progress


  • Not enacted
    The President has not signed this bill
  • The senate has not voted
  • The house has not voted
      house Committees
      Committee on Ways and Means
    IntroducedApril 6th, 2017

What is House Bill H.R. 2005?

This bill — known as the Offshoring Prevention Act — would seek to prevent corporations from moving jobs overseas by eliminating a tax break that exists for U.S. companies that produce products overseas that are then imported into the U.S. 

Under current law, such businesses are able to defer payment on federal corporate income taxes, which they can wait to do until the taxes they owe on their foreign income lowers their tax liability.

Impact

Businesses that are based in the U.S. but produce goods overseas to be sold in the U.S.; and the federal government.

Cost of House Bill H.R. 2005

A CBO cost estimate is unavailable.

More Information

In-Depth: Sponsoring Rep. David Cicilline (D-RI) introduced this bill to get rid of a tax break for companies that are based in America but produce goods overseas that are then sold in the U.S. that costs the government about $2 billion per year:

“When they're given the chance to compete on a level playing field, Rhode Island workers will do their jobs better than any competitors. It's long past time to close tax loopholes that reward companies for shipping American jobs overseas. Let's pass this bill into law and give Rhode Island workers a chance to get ahead.”


Media:

Summary by Eric Revell

(Photo Credit: MaxPixel / Creative Commons)

AKA

Offshoring Prevention Act

Official Title

To amend the Internal Revenue Code of 1986 to provide for the taxation of income of controlled foreign corporations attributable to imported property.

    Perhaps I'm simple but why would we give a tax break to big corporations that then send jobs overseas so they may get another break in labor costs? How about we give the break to only small businesses who don't offshore and close the loophole for offshoring once and for all. Remember, America first?
    Like (219)
    Follow
    Share
    Should you punish somebody for moving their production from Massachusetts to New Hampshire because it's more economically feasible for them to run their business because of the heavy-handed meddling of government? Absolutely not. What we should do is incentivize companies to keep production in America by lowering taxes, not threatening them with even more burdensome taxes, laws, and regulations. This is exactly why they're fleeing in the first place, we are driving away business so that only the largest companies can survive. Who do you think lobbies for these regulations anyways?
    Like (21)
    Follow
    Share
    The best way to encourage employers to keep jobs in the US is to eliminate tax cuts received by outsourcing. This is a no-brainer and so obvious that it shouldn't have to be said.
    Like (128)
    Follow
    Share
    Stop GIVING Corporate Welfare and Corporate Entitlements. This is what has lead America into the current economic crisis it is in and helped create the deficit it is in.
    Like (114)
    Follow
    Share
    Corporations shouldn't be rewarded for outsourcing jobs. It would be more effective to incentivize actions by corporations that create jobs at home, advance renewable energy sources, reduce pollution, increase recycling, and reduce energy use for shipping.
    Like (65)
    Follow
    Share
    Remove tax breaks to keep jobs home. Remove corporate subsidies for oil companies. What's good for business is not always good for America.
    Like (51)
    Follow
    Share
    This is misleading, a red herring, look deeper. There are arguments that the number of jobs that are actually lost are minuscule and have no net effect on US employment. This goes back as far as the Reagan Administration and has been batted back and forth since, but the Republicans own this one. However, if the tax break were eliminated there would be no confusion and definitely no jobs lost over seas. The real Gorilla in the room is corporations profits held over seas. American corporations are taxed on profits world wide. That means that no matter where the profits are made, it's taxed by the US IRS except in two cases. First, if the profits are held say in Ireland where the corporate tax rate is extremely low the US corporate tax can be deferred indefinitely but the corporations would pay taxes at the lower Irish corporate rate or Second, when the profits are brought to the US the US corporate tax rate (current rate 35%) would be paid "less" any amount of corporate tax paid to any other government. In this example Ireland. The average corporate tax paid under this arrangement is a whopping 5%. When the politicians keep screaming reduce the corporate rate remember they ain't paying 35% ever.! When you read this think of Apple. There are many, many other corporations involved but what it amount to is a give away to foreign governments and actually can result in negative numbers, no US tax at all. Check it out: http://harvardlpr.com/online-articles/shipping-jobs-overseas-how-the-tax-code-subsidizes-foreign-investment-and-how-to-fix-it/.
    Like (32)
    Follow
    Share
    Why is this even a question? And since when is $2B in tax breaks "inconsequential"? Why should American taxpayers fund for-profit corporations to take their jobs away from them??
    Like (31)
    Follow
    Share
    I certainly share everyone's resentment towards companies that off-shore jobs! However, you have to ask yourself WHY companies do that! There are several factors driving this exodus of jobs: (1) government regulations; (2) high corporate taxes; (3) union demands; and (4) the constant push by the liberals for a higher minimum wage and more and more employee benefits that drive up the cost of running a business! STOP THESE JOB-KILLING PRACTICES AND JUST WATCH THE COMPANIES COME POURING BACK INTO THE GOOD OLE U.S.A.!!! Oh, I forgot one important thing: STOP GIVING WHAT JOBS THERE ARE IN AMERICA TO ILLEGAL ALIENS AND FOREIGNERS WITH WORKERS' VISAS!!!
    Like (19)
    Follow
    Share
    Just cut out all of the complicated rules and exemptions that are intended to control how people do business. Flat tax or Fair tax.
    Like (16)
    Follow
    Share
    What better way to encourage corporations to keep jobs in America. Home is where the tax break should be. Any corporation that offshores or sends jobs overseas should not get any type of tax break!
    Like (16)
    Follow
    Share
    Stop Corporate Welfare! Vote yes.
    Like (15)
    Follow
    Share
    If a company produces most of its products in foreign countries they deserve no tax breaks.
    Like (14)
    Follow
    Share
    Too many tax breaks for corporations, they need to pay their fair share instead of hording wealth.
    Like (14)
    Follow
    Share
    We should stop giving tax breaks to large corporations that go global, most often to exploit cheap labor.
    Like (11)
    Follow
    Share
    Regarding taxation on corporations, I do not buy Reagan's "trickle-down economics", which is what started the current state of corporate welfare and reduction in anything good for those who earned less than $100,000/yr. I want to encourage any legislation that will level the playing field for the 99% of us who struggle from paycheck to paycheck. Please do not incentivize off-shore sourcing of jobs, and please do all that you can to close tax loopholes that currently allow the wealthiest to pay the least in taxes. The remainder of this note is copied from "Leigh's" note: "This bill should also discourage corporations and business from relying heavily on incarcerated workforce as well. Calling something "Made in America" that employs a large percentage of incarcerated individuals who are paid an extremely low wage but sold at a high price is misleading and does nothing to employ Americans living in the community in search of employment." Let's start to restore justice, equality and opportunity to our American values.
    Like (10)
    Follow
    Share
    I support any reduction in taxes at any time for anyone for any reason. You don't get to decide how much of someone else's income you can just help yourself to (and yes, corporate income is ultimately the income of another person, another human being who has a rightful claim that you are unethically preempting). You want corporations to stay in the US? How about LOWERING our corporate tax rate from the highest in the world?
    Like (10)
    Follow
    Share
    US corporations should be required to pay its fair share of taxes and not continue to have tax loopholes.
    Like (9)
    Follow
    Share
    What this question should ask is : How many US Corporations would return its business to American soil if Congress lowered corporate taxes below that of the world.
    Like (9)
    Follow
    Share
    The primary reason companies go offshore is to remain competitive in the Global Marketplace, tax rates are secondary. I mean, realistically, how many people will pay $500 (thanks to the Unions) for a pair of sneakers made in the USA when they can pay $200 for the same pair made in the Far East? Once again common sense rules❗️Remember when all of our televisions were made in the USA, until the Unions drove them offshore...I do! So ultimately who won...all of you Union supporters won the battle and lost the war by ending up with American workers losing their jobs because of costly and unreasonable Union demands or the Companies, back office employees, and their stockholders, who were able to stay in business by moving their manufacturing offshore and staying competitive⁉️
    Like (9)
    Follow
    Share
    MORE