HARTFORD, Conn. (WTNH)– Do you think it makes sense for the U.S. tax code to give a tax break to companies that send U.S. jobs overseas?
Most people would say that doesn’t make any sense and and this week there will be an effort in the U.S. senate to reverse that policy. Nearly 2.4 million U.S. manufacturing jobs have been sent overseas by big U.S. companies in the past decade. And although the trend has slowed down as costs in foreign countries have increased, the U.S. tax code still gives U.S. corporations big tax deductions and other incentives to send U.S. jobs to other countries.
“The question here is simple; would we rather provide an incentive to ship jobs out of the country or would we rather provide and incentive to bring jobs back to the country,” asked Sen. Chris Murphy (D-CT).
Connecticut’s two U.S. Senators say they will be asking that question to their Senate colleagues this week as they attempt again to pass the ‘Bring Jobs Home Act’ that failed by 4 votes two years ago. They note that some Connecticut companies are making the effort.
“Companies like NPI Medical in Ansonia, Vision Technical Molding in Manchester, these companies in Connecticut are bringing jobs home, we need to encourage that trend,” said Sen. Dick Blumenthal (D-CT).
The ‘Bring Jobs Home Act’ (Senate bill 2562) would reverse the tax break and instead of allowing companies to deduct the expenses of moving to another country this change in the tax code would give companies a large tax break for bringing jobs back to the U.S. from foreign countries.
“20 percent tax credit for companies that bring jobs home…the tax credit is for the moving expenses of bringing those jobs back here,” explained Sen. Blumenthal.
You can’t really blame big companies for doing this as they are not motivated by the red, white and blue but by the color of money. These tax savings for sending work overseas looks good to a company’s board of directors and share holders.