Providence, RI – Continuing his “Making it in Rhode Island” tour, U.S. Senator Sheldon Whitehouse today outlined legislation he plans to introduce next week to support the state’s manufacturing sector and keep good jobs in Rhode Island. The Offshoring Prevention Act would close a perverse tax loophole that rewards companies for moving factories overseas.
“As I travel around Rhode Island, I’ve heard from local businesses who are proud to provide good jobs for their community, and who want to keep those jobs here in the Ocean State,” said Whitehouse. “My legislation would even the playing field for businesses providing good jobs here by ending an unfair tax provision that rewards companies that ship jobs overseas.”
Currently, U.S. companies that manufacture goods abroad for sale here at home are allowed to defer payment of federal income tax – waiting to pay taxes on foreign income in years that minimize their tax liability. The Offshoring Prevention Act would require all U.S. companies to play by the same rules and pay income tax in the current year, removing one incentive to send jobs overseas and helping local businesses compete.
Senator Whitehouse has been visiting local manufacturers to hear from them about the challenges they face and what they need to grow and prosper. Today he visited Cranston Print Works and Yushin America, Inc. in Cranston, and Ira Green, Inc. in Providence.
Whitehouse’s plan to support local manufacturers is available at http://www.whitehouse.senate.gov/RIJobs.