The Wall Street Journal today points out the ironic title of the Creating American Jobs and Ending Offshoring Act (S. 3816), slated for a procedural vote in the Senate tomorrow. Masquerading as a way to “insource” jobs back into the United States, the bill introduced on Sept. 21 by Sen. Richard Durbin (D-IL) would make U.S. companies less competitive and actually could lead to a loss of U.S. jobs.
The real culprit here is the U.S. corporate tax rate, currently ranked No. 2 among developed nations and much higher than most of our competitors. The NAM’s Manufacturing Strategy for Jobs and a Competitive America encourages law makers to support policies to ensure that the United States will be the best country in the world to headquarter a company, to innovate and perform global R&D and to manufacture, both for the American market and as an export platform for the world.
To this end, the National Association of Manufacturers supports a national tax climate that does not place U.S. manufacturers at a competitive disadvantage in the global marketplace. Unfortunately, the tax increases in S. 3816 do just the opposite. With “jobs” a key theme in political campaigns around the country, it’s hard to understand why the Senate tomorrow will vote on a bill that would be a job-killer when instead lowering the corporate tax rate could create more than 2 million jobs by 2019.
- Deferral, Outsourcing and Making the U.S. Less Competitive
- Raising Taxes on Manufacturers is not a Pro-Manufacturing Strategy