The US Anti outsourcing Bills have been one of the widely discussed bills in the Indian, Philippines and US media. Commentators took extreme position primarily because of the sensitivity of the nature of topic (job loss) and both democrats and republicans had a difficult time holding on to their position. The bills in questions are Bring Jobs Home Act and United States Call Center Worker and Consumer Protection Act. If you too were keenly following the developments, below are the 15 important things which you should know about to stay updated.
Bring Jobs Home Act proposed
1.Grant business taxpayers a tax credit for up to 20% of insourcing expenses incurred for eliminating a business located outside the United States and relocating it within the United States, and
2.Deny a tax deduction for outsourcing expenses incurred in relocating a U.S. business outside the United States. Requires an increase in the taxpayer’s employment of full-time employees in the United States in order to claim the tax credit for insourcing expenses.
3.Required a business enterprise that employs 50 or more employees, excluding part-time employees, or 50 or more employees who in the aggregate work at least 1,500 hours per week, exclusive of overtime, in a call center to notify the Secretary of Labor at least 120 days before relocating such center outside of the United States.
4.Subjected violators to a civil penalty of up to $10,000 a day.
5.Directed the Secretary to maintain and make publicly available a list of all such employers that relocate a call center.
6.Required such an employer to remain on the list for up to three years after each relocation.
7.Made such employers ineligible for federal grants or federal guaranteed loans for five years after being added to the list, except where the employer demonstrates that a lack of such loan or grant would threaten national security, result in substantial job loss in the United States, or harm the environment.
8. Required the head of federal or state executive agency or military department, when awarding a civilian or defense-related contract, to give preference to a U.S. employer that does not appear on the list.
9.Required a business entity that initiates or receives a customer service communication to require each of its employees or agents participating in the communication to disclose their physical location at the beginning of each such communication unless all involved employees or agents are located in the United States.
10. Both the bills focus on a would have a relatively small budgetary effect in comparison to
to $15.5 trillion U.S. gross domestic product or the $2.5 trillion the government is collecting this year in tax revenue.
11. Eliminating the tax deduction would have raised revenue by $168 million over 10 years and the tax break would have costed just $255 million.
12.US Senator Orrin Hatch, R-Utah had said that there is no tax break for outsourcing, and and said the bill was “devoid of serious content because it is of political rather than economic priorities.
13. Many quoted, Dartmouth’s Tuck School of Business economist Matthew Slaughter, who in a study of the hiring practices of 2,500 US multinationals, found that for every job outsourced, nearly two new jobs are created in the US.
14. Bring Jobs Home Act Got defeated by 56-42 vote on July 19 2012.
15. United States Call Center Worker and Consumer Protection Act is still pending.