Republicans Defeat the ‘Stop Outsourcing of American Jobs’ Amendment

When the House Ways and Means Committee debated the GOP tax bill yesterday, Republicans voted down the “Stop Outsourcing of American Jobs” amendment offered by Rep. Lloyd Doggett (D-Texas).

The “Stop Outsourcing of American Jobs” amendment would require that multinational corporations looking to invest offshore pay the same tax rate as small businesses or domestic companies investing here in America. The amendment was defeated on a party-line vote, with 16 Democrats voting in favor and 23 Republicans voting against.

This is what Rep. Doggett had to say in support of his amendment:

“President Trump has made stopping the outsourcing of American jobs a central element of his promise to the American people. Unfortunately, like his promise to have Mexico pay for his unnecessary wall, it’s very much a broken promise. 

“It is flat wrong that the corner pharmacy should have to pay a rate that is substantially higher on its operations than Pfizer on its operations. My amendment ensures that both are treated the same way—that we tax profits earned abroad the same way that they are taxed here at home.

“All my amendment does is treat people who earn profits abroad the same way as those who earn profits at home. We’re not against profits; we’re not against maximizing profits; just pay your fair share. When you set up a system, as has been done in this bill, that creates one rate abroad that could be zero and at home it is 20 percent, guess where this money is going to flow? It will flow out of America, just like the jobs will flow out of America.

“If you believe in keeping our jobs at home, and believe we have lost too many already, don’t create a system that the only jobs that it will add are more tax lawyers and more CPAs to find ways to dodge taxes. They have dodged enough. They have dodged $100 billion a year.”

Under the Republican tax bill, a small business that creates jobs on Main Street USA would pay U.S. taxes on its profits at a rate of 20%, while a big corporation that outsources those same jobs to Ireland or Switzerland would pay NO U.S. TAXES on the profits it earns from outsourcing. The Doggett amendment would apply the same U.S. tax rate to profits from outsourced operations and domestic operations.

Reducing the U.S. tax rate on offshore profits to 0%—which is basically a subsidy to companies that outsource jobs—would cost $205 billion over 10 years. Even worse, the GOP tax bill would encourage foreign countries that want to attract offshore investment to lower their corporate tax rate or to create tax-free export processing zones. The more other countries lower their corporate tax rates to attract offshore investment, the bigger the tax subsidy for offshoring this bill will provide. The GOP tax bill creates a powerful incentive for big companies to outsource jobs, and it is an incentive that will grow over time.

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Reposted from AFL-CIO

Posted In: Allied Approaches, From AFL-CIO

Union Matters

Get to Know AFL-CIO's Affiliates: National Association of Letter Carriers

From the AFL-CIO

Next up in our series that takes a deeper look at each of our affiliates is the National Association of Letter Carriers.

Name of Union: National Association of Letter Carriers (NALC)

Mission: To unite fraternally all city letter carriers employed by the U.S. Postal Service for their mutual benefit; to obtain and secure rights as employees of the USPS and to strive at all times to promote the safety and the welfare of every member; to strive for the constant improvement of the Postal Service; and for other purposes. NALC is a single-craft union and is the sole collective-bargaining agent for city letter carriers.

Current Leadership of Union: Fredric V. Rolando serves as president of NALC, after being sworn in as the union's 18th president in 2009. Rolando began his career as a letter carrier in 1978 in South Miami before moving to Sarasota in 1984. He was elected president of Branch 2148 in 1988 and served in that role until 1999. In the ensuing years, he worked in various roles for NALC before winning his election as a national officer in 2002, when he was elected director of city delivery. In 2006, he won election as executive vice president. Rolando was re-elected as NALC president in 2010, 2014 and 2018.

Brian Renfroe serves as executive vice president, Lew Drass as vice president, Nicole Rhine as secretary-treasurer, Paul Barner as assistant secretary-treasurer, Christopher Jackson as director of city delivery, Manuel L. Peralta Jr. as director of safety and health, Dan Toth as director of retired members, Stephanie Stewart as director of the Health Benefit Plan and James W. “Jim” Yates as director of life insurance.

Number of Members: 291,000 active and retired letter carriers.

Members Work As: City letter carriers.

Industries Represented: The United States Postal Service.

History: In 1794, the first letter carriers were appointed by Congress as the implementation of the new U.S. Constitution was being put into effect. By the time of the Civil War, free delivery of city mail was established and letter carriers successfully concluded a campaign for the eight-hour workday in 1888. The next year, letter carriers came together in Milwaukee and the National Association of Letter Carriers was formed.

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