CBO Report: GOP Tax Bill Will Reward Companies That Offshore American Jobs

Tuesday, April 10, 2018

Washington, DC The new Congressional Budget Office report updating the national budget and economic outlook over the next decade includes a detailed analysis of the effects of the December 2017 Republican tax bill. The CBO analysis confirms that the bill provides incentives for companies to send more American jobs overseas.

“The CBO report is the latest reminder that the corporate tax cut bill was designed to help wealthy CEOs and big shareholders, not working people,” said CWA President Chris Shelton. “President Trump, Paul Ryan and Mitch McConnell promised that this time it would be different and corporations would use their tax savings to raise wages and create jobs. Instead it’s the same old story with a twist. Big companies are pocketing their windfall and shipping American jobs overseas, and the Republican Congress is rewarding them for it.”

Many of the companies that are among the biggest beneficiaries of the Republican tax bill have been aggressively offshoring U.S. jobs, especially in the call center and customer service industry. Major corporate beneficiaries of the bill, such as big banks and big telecom companies, have been closing call centers in communities across the country.

CWA supports federal call center legislation, backed by pro-worker Senators such as Bob Casey (D-Penn.) and Sherrod Brown (D-Ohio) in the Senate and by a bipartisan group in the House, that would add new accountability and transparency to the offshoring process and make U.S. companies that offshore their call center jobs ineligible for certain taxpayer funded grants and loans. In addition, the bill would give U.S. consumers a right to know where they are calling and to be transferred to a U.S.-based location.

CWA also backs efforts to reverse the offshoring incentives in the Republican tax bill, such as the “No Tax Breaks for Outsourcing Act,” introduced by Congressman Lloyd Doggett (D-Tex.) and Congresswoman Rosa DeLauro (D-Conn.) in the House and Senator Sheldon Whitehouse (D-R.I.) in the Senate.

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