The bill dubbed the “Creating American Jobs and End Offshoring Act” was voted on Tuesday with disastrous results for the supporters of the act. This legislation intended to create tax breaks for the companies that moved overseas operations back to the U.S., but took tax breaks away from the companies that continued, or started to rely on overseas production. There were yea’s and nay’s from both political parties, so this time, the Republicans didn’t filibuster. I somehow believe though, that if the Democrats had stuck together on this that it would have happened.

Democrat’s Reactions

All but four Democrats voted for the bill, The line crossers were Senators Ben Nelson (Neb,) Max Baucus (Mon,) Jon Tester (Mon,) and Mark Warner (Vi.) One independent joined the group, Senator Joe Lieberman (Conn.). While the loss was expected, Senate Majority Leader Harry Reid (D-Nev.) said “The bill we tried to pass today is based on simple common sense: to keep American jobs here in America, we should stop forcing taxpayers in Nevada and across the nation to pay for giveaways that reward companies for sending American jobs overseas.” Democrats knew of the party defections Monday, and hushed acknowledgment was evident.

Republican Thoughts

Republicans said that the bill would kill job creation by taxing the companies and that this was an election maneuver to gain votes. Senator Orrin Hatch (R-Utah) said “Desperate times call for desperate measures, and the majority is showing how desperate they are with a bill that increases the tax burden on job creators and ship much-needed U.S. jobs overseas.” He also said that the measure was “irresponsible” and would not serve to aid in the economic recovery.

Payroll Tax Exemption, Yahoo

The bill had a payroll exemption provision for the companies that moved jobs back onto U.S. soil, and a tax deferral on income from subsidiaries was killed in it. Looking at the proposal in its entirety, I cannot see how these provisions would serve to do what the “No” voters say it would, but then, that’s just this American workers opinion.

Source:http://www.usmoneytalk.com/finance/unemployment-and-economics-outsourcing-bill-killed-in-the-senate-909/