WASHINGTON, DC –(ENEWSPF)—June 2, 2015. Today Rep. Jan Schakowsky (IL-09), Sen. Dick Durbin (IL) and Sen. Sherrod Brown (OH) introduced the Patriot Employer Tax Credit Act, a bill that would provide a tax credit to companies that provide fair wages and good benefits to workers while closing a tax loophole that incentivizes corporations to send jobs overseas. The loophole costs the U.S. Treasury approximately $50 billion each year at a time when outsourced jobs and stagnant wages force more American families to turn to safety net programs to make ends meet. The bill is cosponsored by Representatives Raul Grijalva (AZ-03), Keith Ellison (MN-05), Bobby Rush (IL-01) and Senators Jack Reed (RI), Elizabeth Warren (MA), Bernie Sanders (VT) and Tammy Baldwin (WI).
“For too long, the economy has been rigged in favor of companies that ship jobs and profits overseas,” said Schakowsky. “But not all companies have followed that path. Some have grown their workforce, paid good wages and benefits, and made their communities stronger. We should reward those employers who create good jobs, pay a living wage and provide quality health and retirement benefits. If the Patriot Employer Tax Credit Act is enacted we can give substantial tax credits to patriotic employers, paid for by closing tax loopholes for those who aren’t.”
“I’ve introduced the Patriot Employer Tax Credit Act to reward companies that exemplify American values by treating their workers fairly and keeping jobs here in our country,” said Durbin. “We should be incentivizing businesses that invest in their workers by providing fair wages, health insurance and retirement benefits. I thank Senators Brown and Representative Schakowsky for championing this issue with me. With support in the Senate from Senators Reed, Warren, Baldwin, and Sanders, I hope our colleagues will agree.”
“It’s past time to start rewarding companies that invest in American workers,” Brown said. “We should be giving tax cuts to companies that invest in America’s long-term growth instead of corporations that ship jobs overseas. This bill would give an incentive for creating jobs, employing veterans and servicemembers, and providing good wages and benefits.”
The Patriot Employer Tax Credit Act would grant a tax credit equivalent to 10 percent of the first $15,000 of wages earned by each employee—worth about $1,200 per qualifying worker depending on the company’s federal effective tax rate—to companies that meet the following criteria:
Invest in American Jobs: Maintain headquarters in the U.S. if the company has ever been headquartered in America, has not inverted to avoid U.S. taxes, maintain or increase the number of workers in the U.S. compared to the number of workers overseas, and does not decrease the number of workers through the use of contractors.
Pay Fair Wages: Pay at least 90% of U.S. workers an hourly wage equal to 156% of poverty for a family of three (about $15/hour or $30,000/year).
Provide Quality Health Insurance: Offer Affordable Care Act-compliant health insurance to employees.
Prepare Workers for Retirement: Provide 90% of non-highly compensated U.S. employees a defined benefit plan OR a defined contribution plan with an employer contribution or match equal to at least 5% of worker compensation.
Support Our Troops and Veterans: Pay the difference between regular salary and military compensation for all National Guard and Reserve employees called for active duty and have a plan in place to recruit veterans.
Create a Diverse Workforce: Have a plan in place to recruit employees with disabilities.
Companies with fewer than 50 employees, who face different business circumstances than larger corporations, can qualify for the tax credit by fulfilling a subset of these criteria.
To offset the cost of the Patriot Employer Tax Credit, the legislation would close a loophole that allows corporations to deduct interest expenses used to invest overseas—such as the interest costs of building a manufacturing plant overseas or shipping materials abroad—while allowing the company to defer paying taxes on income derived from those investments until it is repatriated.
Source: Schakowsky.house.gov
