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Pocan, Gillibrand Announce Bill to End Rampant Outsourcing And Protect American Jobs

Mar 6, 2020
Press Release

WASHINGTON, D.C. — Today, U.S. Representative Mark Pocan (D-WI) and U.S. Senator Kirsten Gillibrand (D-NY) announced bicameral legislation, the End Outsourcing Act, which would utilize the tax code and federal grants, loans and contracts to end the outsourcing of jobs overseas.

The bill 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.

“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 Rep. 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 is cosponsored in the Senate by U.S. Senators Tammy Baldwin and Gary Peters and will be introduced in the House of Representatives by Rep. Mark Pocan (D-WI-02). The legislation has also 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.

 

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