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Sanders To Introduce US ‘Outsourcing Tax’ Legislation – Tax

by Leroy Baker, Tax-News.com, Washington

01 December 2016

US Senator Bernie Sanders (I – Vermont) has stated his intention to introduce
legislation into Congress that would impose an “outsourcing tax” on
companies moving jobs out of the United States, as well as stripping them of
their US tax breaks and benefits.

In a reaction to the plan by United Technologies (UTEC) and its subsidiary
Carrier to move jobs to Mexico, Sanders stated that, if any company “wants
to keep outsourcing decent-paying American jobs, those companies must pay an
outsourcing tax equal to the amount of money it expects to save by moving factories
to Mexico or other low-wage countries,” or 35 percent of its profits, whichever
is higher.

His proposed Outsourcing Prevention Act would also require all companies that
outsource more than 50 jobs in a given year to pay back all federal tax breaks,
grants, and loans they have received from the federal Government over the last
decade. In addition, such companies would be prohibited through tax penalties
from rewarding their executives by way of golden parachutes, stock options,
bonuses, or other forms of compensation, and would be prevented from buying
back their own stock.

The terms of the proposed bill contrast with the reported outcome of President-elect
Donald Trump’s recent negotiations with UTEC to stop its plan. He has appeared
to move away from his election threat to impose a tax on the imports back into
the United States of those companies moving production overseas (with particular
reference, at the time, to Ford’s decision to move its small-car production
out of the United States to Mexico).

Article source: http://www.tax-news.com/news/Sanders_To_Introduce_US_Outsourcing_Tax_Legislation____72864.html

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