Rep. Jerry McNerney, D-Pleasanton, introduced a bill today that he said would crack down on loopholes that encourage corporations to ship jobs overseas, and would hit harder at corporations using overseas tax havens illegally.
The Stop Outsourcing and Create American Jobs Act of 2011 directs the Secretary of the Treasury to make a list of “corporate tax haven countries” that enable outsourcing; it also would increase penalties for corporations guilty of a variety of illegal transactions related to an offshore tax haven, such as fraud or false claims.
The bill requires federal agencies to request information about corporations’ outsourcing practices when applying for government contracts and allows preference to be given to companies that have not outsourced jobs in the last year. The penalty for falsifying information regarding outsourcing on an application would be a fine of up to the value of the contract, and a corporation committing this offense also would be disqualified from seeking new contracts for two years.
Any revenue generated by the bill’s fines would be used to pay down the national debt.
“What the people of our region need is clear: jobs. We cannot afford to see good-paying jobs get sent overseas so that big corporations can enjoy landfall profits. The time is now to put a stop to companies shipping American jobs overseas,” McNerney said in a news release. “We are never going to get our economy back on track if corporations keep sending jobs overseas. To do so while honest, hard-working people can’t find jobs is a travesty. These big corporations keep getting richer and richer, while real people are struggling to survive in today’s economy.”