Democrats push tax cut for firms that return jobs to US

Two congressional Democrats introduced bills on Wednesday that would cut taxes for U.S. firms willing to move jobs back here, part of agenda trumpeted again this week by the White House. 

Rep. Bill Pascrell (D-N.J.) and Sen. Debbie Stabenow (D-Mich.) are proposing identical measures in their chambers designed to encourage businesses to move their operations, and jobs, back to the United States while ending a tax break for companies shipping their jobs overseas. 

"Our ability to produce goods here at home is the key to America keeping its competitive edge in the world market," Pascrell said. 

Under the proposal, eligible firms would qualify for a tax credit equal to 20 percent of the cost associated with making the move back to the United States.

The measure ends a tax deduction for the cost of moving personnel and components of a company to a new location, defined as a business expense, or companies outsourcing jobs and business activity.  

President Obama has been touting the idea since he took office and has picked back up on it in recent months as election-year activity heats up. 

As part of his latest effort to spur congressional action, Obama put the measure on his "to do" list, calling on lawmakers to pass the plan during at trip to Albany, N.Y., on Tuesday. 

"We need to be exporting our products, not our jobs,” Stabenow said. 

"Instead of letting companies use tax loopholes that help them ship jobs overseas, we need to be cutting taxes for companies that create jobs in America," she said. 

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