Baldwin Supports Bill to Reward U.S. Companies That Invest in American Workers, Rather Than Ship Jobs Overseas
The Patriot Employer Tax Credit Act would grant a tax credit equivalent to 10 percent of the first $15,000 of wages earned by each employee.
WASHINGTON, D.C. – U.S. Senator Tammy Baldwin signed on as an original cosponsor of the Patriot Employer Tax Credit Act, a bill that would provide a tax credit to companies that provide fair wages and good benefits.
“We should respect hard work and invest in American businesses and workers instead of rewarding corporations that ship our jobs to other countries,” said Senator Baldwin. “We need to create Made in America economic growth that will rebuild our middle class, not encourage the outsourcing of American jobs.”
The Patriot Employer Tax Credit Act would grant a tax credit equivalent to 10 percent of the first $15,000 of wages earned by each employee—worth about $1,200 per qualifying worker depending on the company’s federal effective tax rate—to companies that:
- Invest in American Jobs: Maintain headquarters in the U.S. if the company has ever been headquartered in America, has not inverted to avoid U.S. taxes, maintain or increase the number of workers in the U.S. compared to the number of workers overseas, and does not decrease the number of workers through the use of contractors.
- Pay Fair Wages: Pay at least 90% of U.S. workers an hourly wage equal to 156% of poverty for a family of three (about $15/hour or $30,000/year).Provide Quality Health Insurance: Offer Affordable Care Act-compliant health insurance to employees.
- Prepare Workers for Retirement: Provide 90% of non-highly compensated U.S. employees a defined benefit plan OR a defined contribution plan with an employer contribution or match equal to at least 5% of worker compensation.Support Our Troops and Veterans: Pay the difference between regular salary and military compensation for all National Guard and Reserve employees called for active duty and have a plan in place to recruit veterans.
- Create a Diverse Workforce: Have a plan in place to recruit employees with disabilities.
Companies with fewer than 50 employees or that face different business circumstances than larger corporations can qualify for the tax credit by fulfilling a subset of these criteria.
To offset the cost of the Patriot Employer Tax Credit, the legislation would close a loophole that allows corporations to deduct interest expenses used to invest overseas—such as the interest costs of building a manufacturing plant overseas or shipping materials abroad—while allowing the company to defer paying taxes on income derived from those investments until it is repatriated.
The bill was introduced by U.S. Senators Sherrod Brown (D-OH) and Dick Durbin (D-IL) and was cosponsored by U.S. Senators Jack Reed (D-RI), Elizabeth Warren (D-MA) and Bernie Sanders (I-VT).
NOTE: This press release was submitted to Urban Milwaukee and was not written by an Urban Milwaukee writer. While it is believed to be reliable, Urban Milwaukee does not guarantee its accuracy or completeness.
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