Mr. President, yesterday we were again thwarted in our attempts to take another important step in supporting our Nation's economic recovery.
In 2009, we passed the American Recovery and Reinvestment Act, which provided a much needed jump-start to get our economy going again, save and create jobs, and make critical investments in our infrastructure.
In March of this year, we passed the HIRE Act, which has been providing businesses with tax incentives to hire out-of-work Americans.
Just Monday, President Obama signed the Small Business Jobs Act into law, which will provide support and relief to small businesses and lay the groundwork to help these businesses create up to 500,000 jobs.
Yesterday, Republicans blocked consideration of the Creating American Jobs and Ending Offshoring Act, which would have supported our Nation's manufacturing sector by encouraging American companies to bring jobs back to America. Even though we have been witnessing a growth in private sector jobs, we are still struggling to prevent the loss of good jobs.
The Creating American Jobs and Ending Offshoring Act would provide a tax break to companies that bring jobs back to the United States, in the form of relief from the employer share of the Social Security payroll tax.
Additionally, this legislation would discourage firms from eliminating American jobs and moving facilities offshore by prohibiting firms from taking any deduction, loss, or credit for amounts paid to reduce operations in the United States and start or expand similar operations overseas.
It would also end the Federal tax subsidy--known as deferral that rewards firms that move their production overseas by allowing them to defer paying tax on income earned by their foreign subsidiaries until that income is brought back to the United States.
The Creating American Jobs and Ending Offshoring Act would encourage American companies to get back in the business of hiring American workers. Nonfinancial companies in the United States are reportedly sitting on $1.8 trillion of capital. With these reserves, it should not be prohibitive to bring new American workers on the payroll. This legislation would ensure that these companies are using their resources to create new American jobs instead of sending those jobs overseas.
I am disappointed that my colleagues on the other side of the aisle failed to join with us to support this commonsense legislation, which would provide desperately needed jobs to out-of-work Americans and support America's manufacturing sector. Instead, they have voted to preserve tax breaks that reward companies who ship jobs overseas.
I am also disappointed that we have failed to extend the TANF Emergency Contingency Fund, which is set to expire on Thursday. I joined with a number of my colleagues to introduce and press for legislation to extend the fund for 3 months.
The TANF Emergency Contingency Fund has been used to support the successful Jobs Now program in Rhode Island, which has provided local businesses with subsidies to hire workers from struggling families. In addition to providing jobs to out-of-work Americans, this program is a win for businesses that could not otherwise bring new workers on board. Without this fund, these businesses will be hard-pressed to keep these new employees on the payroll. Unfortunately, in outcome that has become all too common, this extension was subject to an objection from the other side of the aisle.
I hope my colleagues on the other side of the aisle will recognize what is at stake and join us in the effort to give American workers and businesses the help they need. I remain committed to pressing for innovative and commonsense efforts that will bolster the economy, create jobs, and help the middle class.
