126th Morrison Congress

2nd Session

H.R. 126

Title of the Bill: Creating American Jobs and Ending Offshoring Act

Main Author(s): Rep. Hideaki Nakayama (Mr. Durbin [for himself, Mr. Reid, Mr.
Schumer, Mr. Dorgan, Mrs. Boxer, Mr. Brown of Ohio, and Mr. Leahy)

Co-Sponsor(s): Sen. Joseph Chou

BE IT ENACTED BY THE MORRISON CONGRESS

1 SECTION 1: Findings
2 Congress makes the following findings:
3 1) a University of California study reported that 14 million white-collar jobs are
4 vulnerable to being outsourced offshore. The jobs, specifically, generates the
5 bulk of the tax revenues that fund our education, health, infrastructure, and
6 social security systems. (I)
7 2) Employees replaced by offshore workers are left unemployed or in a lower
8 paying job had a lesser presence in the consumer market. (II)
9 3)Offshoring provide fewer retirement saving for new investment within the
10 country. (II)
11 4) Ron Hira, professor at the Rochester Institute of Technology, and Anil
12 Hira, professor at Simon Fraser University, reported that the track record for
13 the re-employment of displaced US workers is abysmal: The Department of
14 Labor reports that more than one in three workers who are displaced remains
15 unemployed, and many of those who are lucky enough to find jobs take major
16 pay cuts. Many former manufacturing workers who were displaced a decade
17 ago because of manufacturing that went offshore took training courses and
18 found jobs in the information technology sector. They are now facing the
19 unenviable situation of having their second career disappear overseas. (I)
20 5) Outsourcing has led to record unemployment and major drops in university
21 enrollments, especially in the engineering field, technical and scientific
22 disciplines. (III)
23 6) Outsourcing is the source of increased and non-stopping erosion of
24 Americas superpower status: US firms are going into a pattern of reducing
25 themselves to a brand name with a sales force. (III)
26
27 SECTION 2: Purpose
28 This bill provides that the government should provide aid, create policy in
29 encouraging, and all means necessary to creating American jobs and ending
30 offshoring.
31
 32 SECTION 3: General Provisions
33 1) Incentives to create American jobs: Encouraging business to create jobs in
34 United States. Exempts businesses from paying Social Security payroll tax
35 on salaries paid to the U.S. workers working within the country. Eligibility will
36 be determined by i.e.: replacement of oversea worker who have similar job
37 description with U.S. worker working in the country.
38 2) Disincentives to moving American jobs overseas: (a) End subsidies for
39 plant closing costs. Prohibits a firm or company taking any deduction, loss or
40 any revenue in ending a trade, business, or operation in the U.S. and
41 starting, expanding, investing, or any other act in similar overseas. However,
42 the bill does and will not cover the loss of cost associated with employees
43 that lose their job due to the offshoring. (b) End tax break for runaway plants.
44 End tax subsidy that rewards the relocation of U.S. firm and their production
45 overseas. Repeals any deferral that ends the competitive advantage of any
46 act in offshoring. Exception is made to marketing facilities overseas that have
47 the sole purpose of selling products.
48
49 SECTION 4: Definitions
50 1) Firm: (a) the name or title under which a company transacts business. (b)
51 A partnership of two or more persons that is not recognized as a legal person
52 distinct from the members composing it. (c) a business unit or enterprise.
53 2) Subsidy: a form of financial aid or support extended to an economic sector
54 generally with the aim of promoting economic and social policy.
55 2) Deduction: any item or expenditure subtracted from gross income to
56 reduce the amount of income subject to income tax.
57 3) Deferral: investments on which applicable taxes (typically income taxes
58 and capital gains taxes) are paid at a future date instead of in the period in
59 which they are incurred.
60

Works Cited:

I. The Offshore Outsourcing of American Jobs: A Greater Threat Than Terrorism

(https://www.globalresearch.ca/the-offshore-outsourcing-of-american-jobs-a-greater-thre
at-than-terrorism/18725)
II. S.3816 - Creating American Jobs and Ending Offshoring Act
(https://www.congress.gov/bill/111th-congress/senate-bill/3816)
III. Senate Democrats Make One Last Push At Jobs Bill
(https://www.huffingtonpost.com/2010/09/22/senate-democrats-make-one_n_735436.ht
ml)