Senator Sheldon Whitehouse and Congressman David Cicilline announced the introduction of the Offshoring Prevention Act.
The legislation aims to eliminate special tax breaks for companies that ship jobs overseas. It would eliminate federal tax breaks for U.S. companies that manufacture goods abroad for sale in the U.S.
"I have heard from too many Rhode Island small businesses that are fed up with unfair competition from abroad," said Whitehouse, who first introduced the Offshoring Prevention Act in 2011. "By giving special tax deals to companies that ship jobs overseas, we put local small businesses at a disadvantage. Ending this costly tax giveaway will help keep jobs in America and generate nearly $20 billion in new revenue – a true win-win."
Cicilline made the announcement at Tanury Industries in Lincoln on Monday morning. Tanury Industries is a local manufacturer with service operations exclusively in the United States. They have over 1,000 U.S. based employees.
"As we work to get our economy back on the right track, it is critical that we level the playing field so American small business owners can compete successfully in the global marketplace," said Cicilline. "There is no reason that our tax policies should actually reward companies for shipping jobs overseas, and I am looking forward to working with Senator Whitehouse to pass the Offshoring Prevention Act."
Cicilline and Whitehouse first proposed the same bill in June of 2011 but it never made it past committee.