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house Bill H.R. 305

Should Tax Breaks for Corporations That “Offshore” Jobs be Eliminated?

Argument in favor

There’s no reason for the federal government to give tax breaks to businesses that ship American jobs overseas. This bill would level the playing field for small businesses while generating some modest, but not inconsequential, tax revenue for the federal government.

Owen's Opinion
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11/23/2016
Using inexpensive foreign labor is bad for the workers, for our economy, and for the environment. Companies based in the US should be taxed for using foreign labor rather than being rewarded for it.
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11/23/2016
If these companies want to be more cost effective they can start by reducing CEO salaries and management salaries to something less than 300x the salaries of regular employees.
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Kat's Opinion
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11/23/2016
Companies that send jobs overseas already save a great deal of money by hiring workers who get paid MUCH less than American workers and through cheaper overseas materials. We should not further incentivize and reward shipping US jobs overseas.
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Argument opposed

This bill would ultimately punish American businesses and make it less likely that they’d be able to expand their U.S. operations because of increased taxes. Besides, an estimated $2 billion per year isn’t a significant amount of tax revenue in the grand scheme of things.

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11/23/2016
As much as I would like to close tax loopholes, this would be like putting a bandaid on serious wound. Just because the manufacturing is done overseas doesn't mean there isn't as many jobs in the US. The companies still have office-based employees, and since the merchandise is imported back into the states, there are ancillary jobs related to that import (Customs, shipping/receiving, etc.). The tax code needs an overhaul, and our government needs to incentivize companies to produce goods in the country, not punish them for trying to operate cost-effectively.
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operaman's Opinion
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11/23/2016
Eliminate all corporate tax rates except for a 15% on earnings tax. We must teach our government about reducing taxes. Our own personal lives are tax almost to the max. If you want clean water and buy a device, it's taxed. Want to clean the air in your home, it's taxed. Some states even tax food. All these taxes are for bloated government. Liberals want to spread the wealth. Well, as taxpayers know, government only consumes and never creates wealth. And the wealth it feeds upon comes from taxpayers in the form of taxpayer wealth.
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Julian's Opinion
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11/23/2016
Though I want a lot of these offshore jobs to come back into the US economy, this bill will only push away foreign companies trying start in the US and may already be producing goods outside the US. This will also force companies already set up in the United States to move their headquarters outside of the US, when we want companies to invest IN the United States.
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    Using inexpensive foreign labor is bad for the workers, for our economy, and for the environment. Companies based in the US should be taxed for using foreign labor rather than being rewarded for it.
    Like (57)
    Follow
    Share
    As much as I would like to close tax loopholes, this would be like putting a bandaid on serious wound. Just because the manufacturing is done overseas doesn't mean there isn't as many jobs in the US. The companies still have office-based employees, and since the merchandise is imported back into the states, there are ancillary jobs related to that import (Customs, shipping/receiving, etc.). The tax code needs an overhaul, and our government needs to incentivize companies to produce goods in the country, not punish them for trying to operate cost-effectively.
    Like (19)
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    If these companies want to be more cost effective they can start by reducing CEO salaries and management salaries to something less than 300x the salaries of regular employees.
    Like (44)
    Follow
    Share
    Eliminate all corporate tax rates except for a 15% on earnings tax. We must teach our government about reducing taxes. Our own personal lives are tax almost to the max. If you want clean water and buy a device, it's taxed. Want to clean the air in your home, it's taxed. Some states even tax food. All these taxes are for bloated government. Liberals want to spread the wealth. Well, as taxpayers know, government only consumes and never creates wealth. And the wealth it feeds upon comes from taxpayers in the form of taxpayer wealth.
    Like (14)
    Follow
    Share
    Though I want a lot of these offshore jobs to come back into the US economy, this bill will only push away foreign companies trying start in the US and may already be producing goods outside the US. This will also force companies already set up in the United States to move their headquarters outside of the US, when we want companies to invest IN the United States.
    Like (14)
    Follow
    Share
    Companies that send jobs overseas already save a great deal of money by hiring workers who get paid MUCH less than American workers and through cheaper overseas materials. We should not further incentivize and reward shipping US jobs overseas.
    Like (7)
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    It's easy to say US companies should be prevented from moving their manufacturing overseas. But the economy is a complex things and when you gain something on one side you may well be losing even more on another. Yes, existing workers in these companies may benefit in the short term, but what happens longer term? The companies are less competitive in competing with foreign rivals. They will either cut production, or will be forced to automate or find other labor saving techniques. In either case, their workers will eventually be gone. Or maybe they will lobby for trade barriers to protect them from low cost foreign competition? Then what? Higher prices for US consumers = less money in consumers' pockets to buy other products or services = business loses in other sectors = job loses elsewhere. All this does is protect some (generally the least cutting edge) at the cost of others (generally the more cutting edge). How is this good for "American workers" or "the economy" overall? A better approach is to use tax or social safety net tools to help displaced workers get new skills or move to where the new jobs are. Let's be aggressively progressive with redistributive policies but cautiously conservative with trade interference. I know it's a losing argument in this political climate but that doesn't make it wrong.
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    Reform the entire tax code. Do not just trim the edges. Our Tax Code is much too complicated. A Citizen should not need to hire a professional to file his, her tax forms. Make this simple, and fair.
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    At face value it sounds like a great idea. But it could hurt startups which I didn't take in account before. A 15% flat tax would be better.
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    Instead, remove the incentives to move offshore. If wealthy people and businesses, the actual job creators (much as politicians would like to take credit for creating jobs, it just ain't so) are *fleeing the country* because of regulatory and tax burdens, there's a problem. And it's a problem that will completely crush our economy if it isn't fixed. Making doing business more burdensome isn't a fix.
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    There’s no reason for the federal government to give tax breaks to businesses that ship American jobs overseas. This bill would level the playing field for small businesses while generating some modest, but not inconsequential, tax revenue for the federal government.
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    Big companies should not be rewarded for shipping American jobs overseas.
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    This is not a tax break first off. This is merely the same as any other business overseas exporting into the US. If domestic corporate taxes weren't so high, American business wouldn't be fleeing to better tax nations.
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    Keep taxing them until they get the point to come home and pay the taxes here
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    While this tax aspect of businesses needs to be looked at, it should not be done as a one off. The total tax reform of businesses needs to be considered as to incent them to remain/return in/to the US. As part of these changes, it stands to reason that then these tax breaks would be eliminated.
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    Keep the jobs and money here.
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    If we want businesses to come to the US and our economy to grow, scrap the Byzantine federal tax code and have a federal flat tax of 10% for businesses and individuals. Move all welfare programs to the states and let them figure out how to pay for it: each state has different needs for different reasons.
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    Whoever put this tax break into law in the first place is a nut-job. This break needs to go now.
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    This change should have been made 10 years ago; but now is also a good time. We need to eliminate the incentive to off-shore.
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    We shouldn't be encouraging it. Market forces should dictate if it's and advantage or not
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