Report: Romney's tax plan could cost 800,000 US jobs

By Vicki Needham - 07/16/12 04:00 PM ET

Republican presidential candidate Mitt Romney's tax plan could cost 800,000 U.S. jobs, according to a new report released Monday.

Keeping jobs on American soil is rising up the presidential campaign agenda, and supporters of President Obama say Romney's proposal encourages U.S. firms to ship jobs overseas and duck taxes, according to the Center for American Progress report.

Romney's plan would provide multinational corporations with a $130 billion tax cut over 10 years that, when combined with the plan to cut the corporate rate to 25 percent from 35 percent, would cost nearly $1 trillion, the report says.

"This is the first president to talk about reviving manufacturing and bringing back jobs from overseas," Richard Trumka, president of the AFL-CIO, told reporters Monday of Obama.

"The outsourcing of jobs is major issue in this election and there will be more of same from Romney, who wants to send jobs overseas, or a president who wants to fight for the middle class and keep jobs here at home," he said.

The analysis shows that Romney's plan would permanently exempt corporate profits made overseas from U.S. taxes and encourage businesses to keep their money stashed in offshore tax havens, leading to a shedding of U.S.-based jobs.

In contrast, Obama has proposed a global minimum tax to make sure corporations are paying their fair share and not gaming the system, the report says.

Former Democratic Ohio Gov. Ted Strickland gave Obama credit for saving the auto industry, which has led to a surge of jobs in his state, a key prize needed for a November win.

Trumka and CAP President Tom Perriello called the outsourcing of jobs "a dangerous practice" and one of the most important issues for working people to consider in this election.

Perriello said the "acceleration in this debate over sending jobs overseas has come from voters more than lawmakers in Washington."

In the past several weeks, Trumka said Obama has separated himself from Romney by showing his commitment to investing in America, while Romney continues on his path to shift jobs overseas.

He cited Romney's experience with Bain Capital, where he closed factories, laid off workers and stashed money offshore.

Trumka called Romney the "happy outsourcer" and pressed for him to support a jobs bill by Sen. Debbie Stabenow (D-Mich.) that aims to bring jobs back to U.S. shores.

He said the union would be committed to electing candidates who are committed to keeping jobs here as well as "defeating every last politician who backs outsourcing."