Insourcing Government Incentives
“I don’t want America to be a nation that’s primarily known for financial speculation and racking up debt buying stuff from other nations. I want us to be known for making and selling products all over the world stamped with three proud words: ‘Made in America.”’.(Bloomberg) This was how president Obama opened a White House forum about bringing jobs back to American soil, or ‘insourcing’. Obama’s administration is looking for ways to keep businesses from outsourcing jobs to other countries to keep costs low. One way the American government is attacking the issue is by issuing financial or capital incentives to firms who bring their jobs back to America. Types of incentives include options like tax breaks for ‘insourcers’, providing manufacturing equipment, and tax credits for research and experimentation.
One large step the government has taken to incentivize insourcing is in the form of a major tax break. President Obama has proposed many bills and programs in the recent years relating to tax breaks for companies who will insource jobs. One of these being the “Bring Jobs Home Act”. This bill proposes a Twenty percent tax credit for companies who bring jobs back into the United States, or insource. The credit would be twenty percent of the cost of bringing the jobs back to American soil. Americas struggling economy would receive the funds necessary to pay for the twenty percent credit by solidifying and closing tax loopholes that encourage outsourcing(Fact Sheet 1) By keeping workers in America, insourcing also ensures that whatever kind of innovation come from these employees begins in the American economy. A report published by the United Nations in 2006 showed that American workers stay in the office longer, get more done per hour and produce more wealth then workers from any other country in the world.(fox news) . This proves to be another incentives form business to insource jobs as they would not only be strengthening the American economy by reducing the
One large step the government has taken to incentivize insourcing is in the form of a major tax break. President Obama has proposed many bills and programs in the recent years relating to tax breaks for companies who will insource jobs. One of these being the “Bring Jobs Home Act”. This bill proposes a Twenty percent tax credit for companies who bring jobs back into the United States, or insource. The credit would be twenty percent of the cost of bringing the jobs back to American soil. Americas struggling economy would receive the funds necessary to pay for the twenty percent credit by solidifying and closing tax loopholes that encourage outsourcing(Fact Sheet 1) By keeping workers in America, insourcing also ensures that whatever kind of innovation come from these employees begins in the American economy. A report published by the United Nations in 2006 showed that American workers stay in the office longer, get more done per hour and produce more wealth then workers from any other country in the world.(fox news) . This proves to be another incentives form business to insource jobs as they would not only be strengthening the American economy by reducing the