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JEC Dems Report: GOP Tax Law Risks Shipping American Jobs Overseas

WASHINGTON, D.C. – Joint Economic Committee Democrats today released a report that finds 15.4 million American jobs are at risk of being offshored. This analysis comes in light of international provisions in the Republican tax law that could incentivize companies to move operations—and American jobs—overseas.

The report explains that the treatment of two new categories of foreign income, global intangible low-taxed income (GILTI) and foreign-derived intangible income (FDII), may exacerbate the threat of offshoring. By allowing companies to reduce their tax burden if they move operations overseas, the law may further endanger American jobs that are already at risk of moving abroad.

“Instead of working to find real solutions to the problems working Americans and their families face today, it is clear the Republican tax law only exacerbates current economic challenges in our country in more ways than one,” said Senator Heinrich (D-N.M.), Ranking Member of the Joint Economic Committee. “We’ve known that wages are stagnant and economic inequality is growing, but the Republican tax law gives massive tax breaks to the wealthy and corporations without the raises that working Americans were promised. Now we also know that there are 15.4 million American jobs that are potentially at risk of being offshored, and this tax law may only compound this issue. We cannot continue to ignore these challenges in the American economy. It’s time to find smart, forward-thinking policies that ensure everyone in this country has a fair shot at getting ahead.”

The report, “GOP Tax Law Risks Shipping American Jobs Overseas,” includes original analysis on how many jobs are at risk for offshoring by state and industry. In states like Michigan and Wisconsin, nearly 16 percent of the private sector workforce is possibly threatened by shipping jobs overseas. In particular, industries like computer systems design and motor vehicle parts manufacturing are the most at risk of being offshored.

Click here to view the report online.