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Congressman McNerney Continues to Fight to Combat Outsourcing

McNerney

It appears the Outsourcing Accountability Act of 2013 has been introduced which will require large corporations that have an annual revenue of $1 billion or more to disclose how many of these employees are working domestically and how many are working abroad. According to the press release, this bill will bring transparency to corporate outsourcing practices and help close tax loopholes that send jobs overseas.

While I can appreciate the thought here, $1 billion seems a bit silly. If this is really “Outsourcing Accountability”, then it should apply to anyone and everyone.  I get it, the Federal Government wants to go after the big fish, but I hope through negotiations and amendments, this figure gets reduced to as low as $1 million because outsourcing has been one of the major factors that has killed our economy and jobs lost.

Going a step further, the  Federal Government should already be working on closing tax loopholes on everybody, not just large companies as you cannot have different rules for different companies.  The sad part is this Outsourcing Accountability Act will amend the Securities Exchange Act of 1934 which I’d say is a much needed update in a  global economy.

It is estimated that from 2000 to 2009, multinational corporations cut 2.9 million U.S. jobs while adding 2.4 million overseas.  Annual job loss due to offshoring has been estimated to be around 300,000.

At least this is a start, but it can be improved. The real question is whether or not Congress take action.

Here is the official Press Release

Washington, D.C. – Today, Congressman Jerry McNerney (D-Stockton) joined Reps. Gary Peters and Tim Bishop in introducing the Outsourcing Accountability Act of 2013.  The bill will require large corporations that have annual revenues of $1 billion or more to disclose how many of these employees are working domestically and how many are working abroad.  This bill will bring transparency to corporate outsourcing practices and help close tax loopholes that send jobs overseas.

“At a time when so many people are looking for good, family-wage jobs, we have a responsibility to fight to keep jobs here in America.  People have the right to know what companies are shipping jobs overseas, and what companies are committed to creating jobs for well-qualified Americans,” said Rep. McNerney.

The Outsourcing Accountability Act will amend the Securities Exchange Act of 1934 so that any company required to file reports with the Securities and Exchange Commission must annually disclose both to the Commission and its shareholders the number of employees working domestically as compared to outside of the United States, as well as the percentage change from the previous year.

As the current law stands, it is difficult to gauge if corporations that benefit from tax incentives and other domestic policies are in fact generating jobs here at home, or sending them to other countries.  The Outsourcing Accountability Act will hold them accountable for sending jobs overseas, and provide accurate information to people investing in the companies.

“If we are going to grow our economy and keep America competitive in the global market, we have to be find ways to create jobs here at home – not ship them overseas,” said Rep. McNerney.  “Just yesterday, I was honored to highlight two companies from Lodi and Stockton that are dedicated to creating and preserving manufacturing jobs in our community.  Those are the kinds of companies we need to be supporting – not big corporations that try to take advantage of tax loopholes to send American jobs overseas.”

It is estimated that from 2000 to 2009, multinational corporations cut 2.9 million U.S. jobs while adding 2.4 million overseas.  Annual job loss due to offshoring has been estimated to be around 300,000.

“I have heard time and again from people in our region how hard it is right now to find a job.  It is unacceptable to allow companies to use the tax code in a way that costs American jobs.  These are folks who are skilled and ready to work,” said Rep. McNerney.

The Outsourcing Accountability Act of 2013 will:

  • Employees by Country and State: The Outsourcing Accountability Act will add location of employees to annual SEC disclosure requirements.  New reports must disclose the total number of employees in the U.S. broken out by State, as well as the total number of employees abroad broken out by country.  The SEC is given the authority to issue regulations to implement this measure.
  • Change in Employees: The Outsourcing Accountability Act will also require companies to report the percentage increase or decrease in employment numbers corresponding with each state and country.
  • Helping Consumers Buy American:  As we work to end the recession, consumers should have the right to know whether their hard-earned dollars are supporting American jobs or not. Once this information becomes public, companies that employ more American workers than their competitors will have an economic incentive to advertise that they’re supporting American jobs.
  • Common Sense Exemption for Recent Initial Public Offerings: The legislation exempts companies for the first five years after their IPO to avoid increasing compliance burdens on newly-public employers.
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