Tax Break: Creating More Job Opportunities in the U.S. (S. 2569)
Do you support or oppose this bill?
What is S. 2569?
(Updated July 19, 2017)
This bill aims to accomplish two things. First to give tax credits (up to 20% of insourced or internally generated expenses) to those who move or relocate their business into the U.S. from a foreign location. To benefit from the tax credits, a taxpayer must also ramp up their number of full-time domestic employees.
Secondly, the bill would deny any tax deductions for outsourced expenses that resulted from moving a business that was once in the U.S. out to another country. Under current law, companies can get tax breaks for the cost of moving people and equipment overseas.
Argument in favor
Closes tax loopholes that encourage companies to ship jobs overseas. The tax credits this bill offers would help push companies to bring American jobs back into the country.
Argument opposed
Businesses moving to foreign countries are not the main cause of layoffs in the U.S. This bill will hamper global companies' competitiveness and threaten economic growth.
Impact
Companies that have operations overseas, companies that plan to relocate to the U.S., and the people that are employed by those companies.
Cost of S. 2569
The CBO does not have a cost estimate at this time.
Additional Info
In Depth:
Data collected by the Tax Foundation found that:"For years 2008 to 2010, relocations (shifting jobs from one location to another) comprised between 3 and 4 percent of total mass layoffs (layoffs of 50 workers or more). Among the small amount of layoffs that can actually be attributed to relocation (3 to 4 percent), the majority of moves happened between states, not countries...Additionally, relocations out of the country make up less than 1 percent of total layoffs and dropped from 0.75 percent of total layoffs to 0.49 percent from 2008 to 2010, with most relocations happening within the same company."
Media:
Tax FoundationSponsoring Senators Mark R. Warner (D-VA), John Walsh (D-MT), Debbie Stabenow (D-MI), and Mark Pryor (D-AR) Press Release
The Oneida Daily Dispatch
The Hill (an article from 2012 when the bill was introduced and did not pass the Senate).
(Photo Credit: Wikipedia)
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