Schumer intros bill taxing outsourced calls

Sen. Chuck Schumer (D-N.Y.) on Wednesday introduced legislation that slaps a $0.25 excise tax on companies that transfer domestic customer service calls to foreign call centers. The bill's chief aim is to stem the outsourcing of jobs.

"If we want to put a stop to the outsourcing of American jobs, than we need to provide incentives for American companies to keep American jobs here," Schumer said in prepared remarks. "This bill will not only serve to maintain call center jobs currently in the United States, but also provide a reason for companies that have already outsourced jobs to bring them back."

Under the bill, companies would incur a $0.25 excise tax for any domestic customer service call that is transferred overseas. 

Companies must also disclose to the caller that their call is being transferred overseas and name which country is receiving the call.

In addition, companies would have to certify to the Federal Trade Commission that they are complying with this requirement.

Schumer said his bill will guarantee Americans know what country stores their personal information, which he said is important because foreign countries do not have to adhere to U.S. consumer protection laws.

Travis May, CEO of TollFreeForwarding.com, which links companies to their customers worldwide, criticized Schumer's bill, saying it would prompt U.S. companies to move operations offshore.  

"This will be be a tax on American businesses who will pass the increased cost on to their U.S. customers," he said in prepared remarks. "Businesses already considering moving their operations overseas will be even more incentivized to do so if this proposal were to become law. This proposal is protectionism at its finest, and very shortsighted."