WASHINGTON, D.C. (WJRT) -
(05/17/12) - It's no secret companies across the country and here in Mid-Michigan have packed up shop and moved production overseas.
But one local lawmaker says there's a loophole in the system that rewards those companies, and she wants to put an end to it.
Senator Debbie Stabenow says the way the tax code is written right now, American companies that outsource jobs can write off the cost of moving personnel as a business expense, and therefore become eligible for a tax deduction.
Stabenow thinks companies that do that should not be rewarded, so she's authored a bill called the Bring Jobs Home Act.
It would end that tax deduction, and instead, reward companies that move back the U.S. The legislation would qualify those companies for a 20 percent tax credit for the cost of bringing the jobs back.
"This is very big issue in Michigan. What we have seen are a number of plants closing up shop. There are a lot of factors involved with that certainly, but we don't want to incentivize folks to do that through the tax code. We don't want people who lose their jobs helping to pay moving expenses. That's ridiculous," Stabenow said.
President Obama supports the Bring Jobs Home Act – it's something he's mentioned in recent campaign appearances. A similar bill in the House of Representatives has been referred to the Ways and Means Committee.
