Durbin, Brown, Reed Introduce Budget Amendment To Reward Companies That Invest In American Workers
[WASHINGTON, D.C.] – U.S. Senators Dick Durbin (D-IL), Sherrod Brown (D-OH), and Jack Reed (D-RI) today introduced an amendment to the FY2016 Budget designed to provide a tax credit to companies that provide fair wages and good benefits to workers while closing a tax loophole that incentivizes corporations to send jobs overseas. The loophole costs the U.S. Treasury approximately $50 billion each year at a time when outsourced jobs and stagnant wages force more American families to turn to safety net programs to make ends meet.
“In the United States, we ought to eliminate tax breaks for corporations that ship jobs overseas and create incentives for companies to stay in America,” Durbin said. “If a company is upholding the American values of paying good wages, providing health insurance and pensions to their employees, and recruiting veterans and people with disabilities who are looking for jobs, then I think there is no question: our tax code should help them in that effort and eliminate tax breaks for companies that ship jobs overseas. This amendment reflects the priority of growing a strong middle class and it merits a place in this budget.”
“We should be doing all we can to encourage companies to invest in American jobs. Tax cuts should go to corporations that do right by their employees and commit to long-term domestic growth. This tax credit would provide an incentive to increase jobs in the U.S., employ veterans and service members, and give employees a fair wage and benefits,” said Senator Brown.
“We need to bring American jobs back home, crack down on offshore tax havens, and eliminate tax advantages for companies that ship job overseas. Passing this amendment would be a smart step toward these goals. We need to level the playing field for companies that want to invest in American jobs and ingenuity,” said Senator Reed.
The amendment would grant a tax credit equivalent to 10 percent of the first $15,000 of wages earned by each employee—worth about $1,200 per qualifying worker depending on the company’s federal effective tax rate—to companies that meet the following criteria:
- Invest in American Jobs by maintaining or increasing the number of workers in the U.S. compared to the number of workers overseas
- Pay Fair Wages by paying most employees a wage so that a family of three doesn’t have to rely on the largest and most expensive federal safety net programs, like Medicaid, Head Start, and child nutrition programs to survive -- about $15 per hour.
- Provide Quality, Affordable Health Insurance by complying with the Affordable Care Act.
- Prepare Workers for Retirement by providing a pension or 401k plan with a fair employer contribution or match.
- Support our Troops, Veterans, and People with disabilities by paying all National Guard and Reserve employees called for active duty the difference between their active duty pay and their regular pay and have in place a plan to recruit veterans and to recruit workers with disabilities.
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