Washington, DC – U.S. Senator Sheldon Whitehouse (D-RI) and U.S. Representative David Cicilline (D-RI) are teaming up to keep jobs in America. The two Rhode Island Members of Congress today re-introduced the Offshoring Prevention Act in both the Senate and House of Representatives. The bill would eliminate a tax break for companies that send jobs overseas and level the playing field for manufacturing businesses here at home.
The bill is one of three “tax fairness” measures that Whitehouse introduced today. Details about all three are available here.
“Rhode Island manufacturers shouldn’t be hurt by competitors that offshore jobs,” said Whitehouse, who first introduced the Offshoring Prevention Act in 2011. “By giving special tax deals to companies that ship jobs overseas, we put local small businesses at a disadvantage. Ending this costly tax giveaway will help keep jobs in America and generate nearly $20 billion in new revenue – a true win-win.”
“We need to do everything we can to create jobs here at home and we should not be incentivizing companies to move jobs overseas,” said Cicilline. “I’m looking forward to working with Senator Whitehouse to advance the Offshoring Prevention Act to keep more jobs here in the Ocean State and end a misguided practice that hurts small businesses and the economy.”
Currently, U.S. companies that manufacture goods abroad for sale here at home are allowed to defer payment of federal income tax – waiting to pay taxes on foreign income in years that minimize their tax liability. The Offshoring Prevention Act would require companies that send factories and jobs overseas to play by the same rules as ones supporting jobs in the U.S., removing an offshoring incentive and helping local businesses compete.
The Joint Committee on Taxation previously estimated that this legislation would generate nearly $20 billion in new revenue over ten years.
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