In order to grow our economy and ensure middle-class families can succeed, we need to be exporting our products, not our jobs. To create new opportunities, we need a strategy with the right policies that stand up for our businesses and workers, so we can see more products being made in Michigan.
It’s encouraging to see more and more people talking about American manufacturing. From the White House to Congress to communities across America, people are focusing on the fact that our economy and our middle-class depend on our ability to MAKE THINGS. And the results are clear. The strongest part of our economic growth for the past two years has been in manufacturing -- led by our American auto industry.
That’s why now more that ever we need a advanced manufacturing strategy for our country that includes a focus on education, innovation, the right tax policies and trade enforcement. Last fall, I introduced my American Competitiveness Plan to crack down on other countries that are violating international trade laws to give their own companies an advantage.
Recently, I introduced a bill to focus on another important issue in the tax code. Right now our country is rewarding companies who move jobs overseas-and rewarding them with tax dollars. To say that's outrageous is an understatement, and it has got to change.
My Bring Jobs Home initiative would encourage U.S. companies to create good-paying jobs right here in Michigan and discourage U.S. companies from shipping jobs overseas. That may seem like common sense, but for some reason our tax code is currently doing just the opposite.
My legislation will do two things-end a tax loophole that rewards U.S. companies for moving jobs abroad, and cut taxes for U.S. companies that move jobs and business activity back to America.
Under current law, businesses can claim the cost of moving personnel and other business components from one location to another as a business expense and deduct the cost when filing their taxes. But that means that we’re actually giving companies a tax break every time they outsource jobs. And to add insult to injury, American workers who lose their jobs to outsourcing also help foot the bill with their tax dollars to move their jobs overseas.
My bill would change the law so that moving jobs or other business components overseas does not qualify for this deduction. However, it would preserve the deduction for U.S. companies moving from abroad back to America.
On top of this deduction, the Bring Jobs Home Act will allow U.S. companies to qualify for an additional tax credit equal to 20% of the cost associated with bringing jobs and business activity back to the United States.
Our state is number one in clean energy patents and Michigan entrepreneurs are already turning innovative ideas into job-creating businesses. This summer, the first-ever patent office, named after Michigan’s Elijah McCoy, will open right here in Detroit to help turn these ideas into job-creating businesses.
We have the talent and the skilled workforce that can out-compete anyone around the world.
We need to be exporting our products, not our jobs. My Bring Jobs Home Act will stop rewarding outsourcing and help American companies bring jobs home-one of the ways we can make sure our tax policies reflect our priorities.
That’s something that both parties in Congress ought to be able to get behind.