WASHINGTON – During today's House Ways and Means Committee hearing, U.S. Rep. Bill Pascrell, Jr. (D-NJ) discussed with U.S. Treasury Secretary Timothy Geithner the Congressman's support of President Obama's proposed "insourcing" tax incentives for manufacturers that bring jobs that have been outsourced overseas back to the United States. Rep. Pascrell has long advocated that domestic manufacturing should be a priority of Congress, and he looks forward to working with the Secretary and President in developing these policies.
"Now we are finally understanding how manufacturing is critical in a balanced economy. 'Insourcing' is a critical policy decision. This is a big deal," said Pascrell, who serves on the House Budget Committee as well as the House Ways and Means Committee.
Secretary Geithner explained how the President's budget includes a 20 percent tax credit for businesses that bring jobs back to the United States, offsetting the cost by removing current tax incentives provided to businesses that ship jobs overseas.
"It is a hard thing to do. But it is very important that we find a way," Geithner said.
The entire exchange between Congressman Pascrell and Secretary Geithner can be seen here:
The proposal, as outlined in the President's budget, would create a new general business credit of 20 percent for eligible expenses paid or incurred in connection with insourcing a U.S. trade or business. Insourcing means reducing or eliminating a trade or business currently conducted outside the U.S. and starting up, expanding, or otherwise moving the same trade or business within the United States, to the extent that this action results in an increase in U.S. jobs.
To reduce tax benefits associated with U.S. companies’ moving jobs offshore, the proposal would disallow deductions for expenses paid or incurred in connection with outsourcing a U.S. trade or business.