Sunday, September 21st, 2014

The Obameter

Create a new tax credit for companies that bring jobs to the United States from overseas

"Ending tax deductions for companies shipping jobs overseas, and using the saving to create a new tax credit for companies that bring jobs home."


Updates

Budget proposal shows Obama is still fighting for it, despite lack of interest in Congress

During the 2012 presidential campaign, President Barack Obama promised to "create a new tax credit for companies that bring jobs home."

He has proposed this idea before -- to no effect in Congress -- most recently in a speech on overhauling the tax code in Chattanooga on July 30, 2013. But he's not giving up the ghost yet.

With the March 4, 2014, release of Obama's fiscal year 2015 budget proposal, the idea is officially back.

In its budget document, the administration proposes "tax incentives for locating jobs and business activity in the United States." These tax incentives, combined with the end of "tax deductions for shipping jobs overseas" (a promise we are rating separately) would, on balance, cost $212 million over 10 years, according to the administration.

Congress has shown no inclination to cooperate with Obama on this effort, and the one broad tax overhaul plan to emerge in Congress -- released in February 2014 by House Ways and Means Chairman Dave Camp, R-Mich. -- focuses its efforts on eliminating exemptions and incentives for businesses, which is pretty much the opposite approach. (Camp's proposal is also widely expected to be going nowhere in an election year.)

We don't expect Obama's tax credit proposal to become law in 2014, if ever, but its inclusion in the fiscal 2015 budget makes clear that the president is still fighting for it. So we rate it In the Works.

Sources:

Barack Obama, fiscal year 2015 budget proposal, March 4, 2014

Barack Obama, remarks at the Amazon Chattanooga Fulfillment Center in Chattanooga, Tenn., July 30, 2013

Dave Camp, House Ways and Means tax proposal, Feb. 21, 2014

Time, "Republican Forges Ahead on Tax Reform", March 5, 2014