House Passed Bill Which Closes the "Offshore Outsourcing" International Corporate Tax Scheme

[FreakinDJ]

House Passed Bill Which Closes the "Offshore Outsourcing" International Corporate Tax Scheme

A little observed provision to remove the tax incentives to offshore outsource your job was passed last Friday by the House of Representatives in the American Workers, State, and Business Relief Act of 2010 bill.

The legislation ties corporate revenues directly to the foreign tax credit. If passed, no longer can a corporation claim credits for foreign taxes yet park the actual profits made offshore in a low tax country. Previously corporations claimed the foreign tax credits, yet only to reduce their U.S. tax liability. The actual foreign revenues were not repatriated into the United States. If one obtains tax credits yet doesn't have to actually pay tax on profits accrued offshore, this encourages the movement of capital, assets and production overseas, including jobs.

When a U.S. taxpayer has overseas income, taxes paid to the foreign jurisdiction can generally be credited against U.S. tax liabilities. In general, this "foreign tax credit" is available only for taxes paid on income that is taxable in the U.S. The intended result is that U.S. taxpayers with overseas income should pay no more tax on their U.S. taxable income than they would if it was all from U.S. sources. However, current rules and tax planning strategies make it possible to claim foreign tax credits for taxes paid on foreign income that is not subject to current U.S. tax. As a result, companies are able to use such credits to pay less tax on their U.S. taxable income than they would if it was all from U.S. sources – providing them with a competitive advantage over companies that invest in the United States.

http://www.economicpopulist.org/content/house-passed-bill-which-closes-offshore-outsourcing-international-corporate-tax-scheme

There are 7 versions of Bill Number H.R.4213 for the 111th Congress. Usually, the last item is the most recent.

1 . Tax Extenders Act of 2009 (Introduced in House - IH)
2 . Tax Extenders Act of 2009 (Referred in Senate - RFS)
3 . Unemployment Compensation Extension Act of 2010 (Engrossed Amendment Senate - EAS)
4 . Tax Extenders Act of 2009 (Engrossed in House - EH)
5 . American Workers, State, and Business Relief Act of 2010 (Engrossed Amendment Senate - EAS)
6 . American Jobs and Closing Tax Loopholes Act of 2010 (Engrossed Amendment House - EAH)
7 . Unemployment Compensation Extension Act of 2010 (Enrolled Bill - ENR)

http://thomas.loc.gov/cgi-bin/query/z?c111:H.R.4213:

[pampango]

1. Great. What's its status in the senate? n/t

[FreakinDJ]

10. Waiting passage

[MadMaddie]

14. which means that the Repugs will try to stop it.

[FreakinDJ]

15. Why else is $1Trillion waiting

American Companies are currently holding $1Trillion Dollars that needs to be reinvested

$1 Trillion in Reserves, But Not Hiring: Is Business 'Anti-Jobs'?

US Companies Stash One Trillion Dollars in Cash: Moody's

http://www.commondreams.org/headline/2010/10/28-0

[Skink]

2. The last bit of good legislation for awhile.

[sasha031]

3. This is huge, I hope it gets the media attention it deserves

[Larkspur]

4. Send it to Ed Schultz

Outsourcing is one of his pet peeves.

[FreakinDJ]

13. done n/t

[pinto]

5. Good bill.

:thumbsup:

:thumbsup:

[pleah]

6. K&R

[FreakinDJ]

7. Write your Senators - Close the Out Sourcing Loop Hole NOW

Dear Senator

Please close the door on Out Sourcing My Jobs - Pass H.R.4213

Senate Email Addresses Here
http://www.senate.gov/general/contact_information/senators_cfm.cfm

[blondeatlast]

17. Happily done--this is one we have to push 'em to the walls on,

and I've asked McCain and Kyl to explain why they would turn this bill down (because I guarantee that they will).

The people need to know--and make a stink about this bill.

[FreakinDJ]

21. Thanks - and kicked

[leveymg]

8. Thnx for that.

[FreakinDJ]

9. Don't thank me - Write your Senator

Unless you want to see $1 TRILLION Dollars exit the United States in the next year - write your Senators

$1 Trillion in Reserves, But Not Hiring: Is Business 'Anti-Jobs'?
US Companies Stash One Trillion Dollars in Cash: Moody's

WASHINGTON — US companies are hoarding nearly one trillion dollars of cash that they are unlikely to use for expansion amid a muddled outlook on economic recovery, rating agency Moody's said Wednesday.

http://www.commondreams.org/headline/2010/10/28-0

[leveymg]

11. I saw $1.8 trillion a couple months ago.

They may have given much of it away to their stockholders rather than invest it in U.S. jobs creation.

[FreakinDJ]

12. I remember in 2003 when Bush created the Loop Hole

$Trillions left the American Economy and nobody said a word

[ellenfl]

16. kick for later. eom

[L0oniX]

18. Oh my gawd ...they actually did something good?

[blondeatlast]

19. I'm going to kick this thread until the Senate votes on this! Bookmarked for a once

a day (at least) :kick:.

WRITE YOUR SENATORS, DU! This is BIG!

[NightHawk63]

20. kicked!!

This is great news!

[bvar22]

22. This will have little effect.

The GAINS of utilizing 3rd World Slave Labor and ducking ALL Environmental and Human Rights regulations FAR outweigh any Tax Break.

This legislation is more decorative/symbolic than meaningful.


The ONLY way to solve this problem is to address the treaties and legislation that CREATED it in the 80s and 90s.

There is NO such thing as a "Free Market".
There is NO such thing as "Free Trade".
There is NO giant "Invisible Hand".
Those myths were created by The RICH and sold to a gullible America.

If you WORK for a Living, do not trust ANY politician who professes a belief in a "Free Market" or "Free Trade".
Neither exists, and that politician is NOT your friend.


"By their works you will know them."

"There are forces within the Democratic Party who want us to sound like kinder, gentler Republicans. I want us to compete for that great mass of voters that want a party that will stand up for working Americans, family farmers, and people who haven't felt the benefits of the economic upturn."---Paul Wellstone

[blondeatlast]

23. But symbols matter. If the people can get it passed with a R Senate majority,

the R's and DINO's might sit up and take notice.

That ridiculous Federal wage freeze was symbolic, too--yet it's succeeded in gearing up the circular firing squad quite well.

[bvar22]

25. Symbols matter when accompanied by substance.

When the Symbol becomes the Mission Accomplished,
the overall results are less than satisfying,
especially for Working Class and waiting for their NEW NAFTA Jobs to show up.

[blondeatlast]

26. Agreed--but something has to start somewhere. Joe sixpack knows the words "offshore"

and "outsourcing" and how both affect him.

If he can get off his overworked behind and call his Senators, this might be a small step in the right direction--at least a step that Joe will appreciate seeing repeated in his favor.

The emphasis wasn't needed, btw, and I consider myself working class.

[bvar22]

27. I agree.

The majority of the American People have opposed the Free Trade policies that our politicians from BOTH parties keep cramming down our throats.

Here is an interesting poll from 2005:

In recent polls (2005!!!) by the Pew Research Group, the Opinion Research Corporation, the Wall Street Journal, and CBS News, the American majority has made clear how it feels. Look at how the majority feels about some of the issues that you'd think would be gospel to a real Democratic Party:

1. 65 percent (of ALL Americans, Democrats AND Republicans) say the government should guarantee health insurance for everyone -- even if it means raising taxes.

2. 86 percent favor raising the minimum wage (including 79 percent of selfdescribed "social conservatives").

3. 60 percent favor repealing either all of Bush's tax cuts or at least those cuts that went to the rich.

4. 66 percent would reduce the deficit not by cutting domestic spending but by reducing Pentagon spending or raising taxes.

5. 77 percent believe the country should do "whatever it takes" to protect the environment.

6. 87 percent think big oil corporations are gouging consumers, and 80 percent (including 76 percent of Republicans) would support a windfall profits tax on the oil giants if the revenues went for more research on alternative fuels.

7. 69 percent agree that corporate offshoring of jobs is bad for the U.S. economy (78 percent of "disaffected" voters think this), and only 22% believe offshoring is good because "it keeps costs down."

http://alternet.org/story/29788/

"69 percent agree that corporate offshoring of jobs is bad for the U.S. economy "

You would think that with THAT kind of popular support, at least ONE of our Political Parties would be able to do something beyond symbolic gestures.

Something is very broken in our country.

[Uncle Joe]

24. Kicked and recommended.

Thanks for the thread, FreakinDJ.:thumbsup: