Richard J. Durbin (D-Ill.) and seven other Democratic senators sponsor the Creating American Jobs and Ending Offshoring Act (S. 3816) which was introduced in the Senate September 21. This legislation would, among other things, end tax deferral for so-called imported property income of controlled foreign corporations (CFCs).
“This legislation is misnamed, because it would eliminate American jobs, not create them,” said Phil Bond, chief executive of TechAmerica in a letter to members of the Senate.
“This bill would increase taxes only for U.S. companies operating outside of the United States, hindering their global competitiveness," Bond said. "Increased tax costs imposed only on U.S. companies would ultimately be borne by U.S. employees, customers, or shareholders through job losses, higher product prices, or lower stock values," he added.
TechAmerica argued that companies used the CFC model so they can better compete with foreign companies in other world markets.
"Companies that are successful overseas add jobs here at home, [and] those that fail to compete are bound to shrink,” Bond wrote.
TechAmerica has 1,200 member companies. It was formed by the merger of four groups including the AeA (formerly the American Electronics Association) and the Information Technology Association of America.