WYDEN
LEGISLATION WILL TARGET OFFSHORE OUTSOURCING June 16, 2004 Washington, DC – Companies that outsource American jobs would lose tax benefits, and outsourced service sector and technology employees would for the first time see training and income relief, under legislation introduced today by U.S. Senator Ron Wyden (D-Ore.). The “Keep American Jobs at Home Act” would eliminate tax deductions for businesses that ship American jobs overseas, provide wage insurance and training assistance for service sector workers whose jobs have been shipped overseas, and offer legal protections for companies who refuse to outsource their workforce to maximize profits. “These are some logical steps Congress can take to keep jobs from leaving the U.S. that won’t damage our long-term economic outlook or our relationships with other nations,” said Wyden. “Republicans and Democrats ought to be able to agree that taxpayers shouldn’t subsidize the exporting of American jobs, companies shouldn’t get forced into exporting those jobs out of fear of lawsuits, and workers who lose their jobs as a result of outsourcing shouldn’t be denied worker training.” A summary of the legislation follows. ELIMINATE TAX BREAKS FOR CORPORATE
OUTSOURCING TRAINING, RETRAINING AND JOB
SEARCH ASSISTANCE WAGE INSURANCE FOR RE-EMPLOYED
DISPLACED WORKERS A McKinsey Global Research study found that only one-third of workers who lost their jobs between 1993 and 1999 found new jobs at equal or higher salaries. The remaining two-thirds matched their earlier salary, at best, or accepted a pay cut. The same study reported that for four to five percent of the savings companies get from outsourcing, they could provide wage insurance for every full-time worker whose job is shipped overseas. CORPORATE IMMUNITY FOR REFUSING
TO OUTSOURCE JOBS The Wyden bill is expected to be referred to the Senate Finance Committee.
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