Golden Backs Bill to Help Stop Outsourcing of Maine Jobs
WASHINGTON — Congressman Jared Golden (ME-02) today announced his cosponsorship of the No Tax Breaks for Outsourcing Jobs Act. The legislation would reverse harmful provisions in the 2017 tax bill that encourage corporations to move jobs and production to foreign countries.
“Maine workers know too well the harsh effects of outsourcing jobs,” said Congressman Golden. “In the last several decades, tens of thousands of Mainers have lost their jobs as corporations moved their operations abroad. For decades, Washington has done nothing to address this problem or made the problem worse. I’m cosponsoring this bill to protect American jobs by removing incentives in our tax code that reward corporations who move jobs and production out of our country.”
The 2017 tax cut bill created a maximum corporate tax rate for offshore income nearly 10 percent lower than domestic income. The change incentivizes companies to shift jobs overseas, often to countries with unethical workplaces standards, where workers have few rights, and where workers are paid low wages.
The No Tax Breaks for Outsourcing Jobs Act will reverse this change to the tax code by:
Equalizing the tax rate on corporate profits earned abroad and here at home;
Repealing the 10 percent tax exemption on profits earned from certain investments made overseas;
Treating “foreign” corporations that are managed and controlled in the U.S. as domestic corporations;
Cracking down on inversions by tightening the definition of expatriated entity;
Combating earnings stripping by restricting the deduction for interest expense for multinational enterprises with excess domestic indebtedness; and
Eliminating tax breaks for foreign oil and gas extraction income.
Golden has made labor issues a priority in his first term in Congress. The No Tax Breaks for Outsourcing Jobs Act has the endorsement of the Maine AFL-CIO and CWA 1400, as well as several national labor groups.