President Obama proposes new incentives for companies that migrate overseas jobs to the U.S. and invest in domestic expansion.
On Wednesday, the Obama administration launched a push to build on recent employment gains by incentivizing corporations to “insource” jobs back to the U.S.
At a White House forum attended by representatives from Ford, Intel, DuPont and other companies that have committed to returning overseas jobs to the U.S., the administration proposed the elimination of tax breaks for corporations that participate in offshore job outsourcing.
“I’m calling on those businesses that haven’t brought jobs back to take this opportunity to get the American people back to work. That’s how we’ll rebuild an economy where hard work pays off and responsibility is rewarded – and a nation where those values live on,” said Obama, arguing that the nation is at a “make-or-break” moment for the middle class.
While Wednesday’s announcement and White House event clearly had political overtones related to the upcoming general election cycle, the impact of outsourcing on U.S. employment has been well documented.
Yet according to published reports, more and more companies appear to be ignoring outsourcing opportunities in favor of domestic investments. Approximately 334,000 manufacturing jobs have been created over the past two years and domestic manufacturing has grown by 5.7%, the largest gain in more than a decade.