McNerney offers bill to crack down on offshoring

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.”

Josh Richman

Josh Richman covers state and national politics for the Bay Area News Group. A New York City native, he earned a bachelor’s degree in journalism from the University of Missouri and reported for the Express-Times of Easton, Pa. for five years before coming to the Oakland Tribune and ANG Newspapers in 1997. He is a frequent guest on KQED Channel 9’s “This Week in Northern California;” a proud father; an Eagle Scout; a somewhat skilled player of low-stakes poker; a rather good cook; a firm believer in the use of semicolons; and an unabashed political junkie who will never, EVER seek elected office.