WASHINGTON, DC – U.S. Sen. Sherrod Brown (D-OH) this week signed on to legislation to support the manufacturing sector and keep good jobs in Ohio and across America. The Offshoring Prevention Act of 2011, which closes a costly tax loophole that rewards companies for moving factories overseas, was authored by Senator Sheldon Whitehouse (D-RI). Senators Patrick Leahy (D-VT), Bernie Sanders (I-VT), Barbara Boxer (D-CA), Dick Durbin (D-IL), and Tom Harkin (D-IA) also joined as original cosponsors of the bill.
"In Ohio, we know how to make things. Our state has a rich manufacturing heritage and spirit of innovation. But due to lax trade law enforcement and tax loopholes that subsidize companies for moving factories overseas, Ohio has lost millions of manufacturing jobs over the past decade," Brown said. "This bill closes corporate tax loopholes that encourage jobs to be offshored. The Offshoring Prevention Act ends the incentive for manufacturers to ship their jobs overseas and will encourage them to keep their jobs right here in the United States, where the workforce is second-to-none.”
Currently, U.S. companies that manufacture goods abroad for sale here at home are allowed to defer payment of federal income tax – waiting to pay taxes on foreign income in years that minimize their tax liability. The Offshoring Prevention Act would require that companies that send factories and jobs overseas play by the same rules as ones supporting jobs in the U.S., removing an offshoring incentive and helping local businesses compete.
Brown was an original cosponsor of similar legislation introduced in September aimed at saving manufacturing jobs, the Creating American Jobs and Ending Offshoring Act. According to the Bureau of Labor Statistics, nearly 400,000 manufacturing jobs have been lost in Ohio over the last decade.
As Chairman of the Senate Banking Subcommittee on Economic Policy and a member of the Senate Manufacturing Caucus, Brown has introduced a package of key legislative proposals aimed at bolstering the competiveness of U.S. manufacturers and boosting domestic manufacturing. He also serves as a member of the President’s Export Council, working to advance the National Export Initiative (NEI) and reach President Barack Obama's goal to double exports over the next five years.
During the State Work Period in August and September, Brown traveled around Ohio meeting with small business owners and workers as part of his “Made in Ohio Tour.” Described as "Congress' leading proponent of American Manufacturing," Brown is working with the Obama Administration on the creation of a national manufacturing policy and has outlined five key areas of focus to invest in the manufacturing industry:
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