Senator Tammy Baldwin's office issued the following earlier today:
3.12.20
The End Outsourcing Act Would Protect American Jobs by Prohibiting Federal Incentives for Outsourced Jobs and Ensuring Federal Policies Only Reward Companies that Invest in the United States
WASHINGTON, D.C. — U.S. Senator Tammy Baldwin announced her support for the End Outsourcing Act, which would utilize the tax code and federal grants, loans and contracts to end the outsourcing of jobs overseas.The bicameral legislation introduced by U.S. Senator Kirsten Gillibrand (D-NY) and U.S. Representative Mark Pocan (D-WI) would prevent employers from deducting expenses related to outsourcing, deny certain tax breaks to outsourcing employers, and require federal agencies awarding contracts, loans, loan guarantees, and grants to establish a negative preference for employers who have outsourced in the last three years.
It also further disincentivizes sending jobs overseas by taxing foreign profits at the same rate as domestic profits. The bill also prevents outsourcing companies from bidding on federal contracts or grants without disclosing their outsourcing practices.
“Big corporations got huge tax breaks from President Trump, and far too often, the result has been outsourced jobs and pink slips for Wisconsin workers,” said Senator Baldwin. “In order to stop the outsourcing of manufacturing jobs, our workers need tax reform that rewards their hard work and doesn’t encourage corporations to send their jobs to other countries. This legislation will help keep jobs here at home instead of encouraging outsourcing.”
“It’s time to stop helping companies that ship jobs overseas, and reward those bringing jobs back home,” said Senator Gillibrand. “For far too long, companies have been allowed to use tax incentives to move facilities overseas for cheap labor, leaving hundreds of New Yorkers — and millions of Americans — struggling without jobs. I’m proud that my End Outsourcing Act would eliminate tax benefits for outsourcers and impose significant penalties on companies that outsource, while also providing incentives for companies that invest in the United States. No one should fear losing their job because their company doesn’t want to invest in American labor. This legislation will be a key step to bringing jobs back to the United States and employing workers across New York State.”
“For too long, we have allowed federal contracts, loans, grants and the tax code to reward companies that prioritize their own profit over the livelihoods of American workers,” said Representative Pocan. “Congress must incentivize companies to invest in American jobs, workers, and communities. In the first two years of the Trump administration, almost 200,000 jobs were outsourced and federal contractors that offshored jobs received almost $51 billion in contracts. This administration is bleeding the middle class dry while showering tax breaks on corporations that outsource strong family-supporting jobs – we must take action to stop it. The End Outsourcing Act is a necessary first step to bring jobs back to our country and put American workers first.”
Too many businesses in the United States have sent domestic manufacturing jobs overseas to low-cost, low-wage countries as companies aim to cut costs and increase profit. Meanwhile, families and communities in states across the country are feeling the loss. Between 2001 and 2015, the United States lost more than three million jobs to China alone--nearly three quarters in manufacturing. The End Outsourcing Act is designed to reverse this trend and ensure that federal contracts, loans, and grants funded by taxpayers support companies that employ American workers.
The End Outsourcing Act, which is also cosponsored by U.S. Senator Gary Peters (D-MI), has received the endorsement of several labor unions, including: the International Association of Machinists and Aerospace Workers, United Steelworkers, Communications Workers of America, the International Brotherhood of Teamsters, and the American Federation of Labor.
