Mr. Speaker, I wanted to just pick up on something that Congressman Veasey said, but first let me just thank the gentleman from California for his relentless push to make sure that we have good jobs in America, that that is part of our…
Mr. Speaker, I wanted to just pick up on something that Congressman Veasey said, but first let me just thank the gentleman from California for his relentless push to make sure that we have good jobs in America, that that is part of our better deal. We are not just talking about jobs. We are talking about good jobs.
I wanted to just say that when it comes to women, if women want equal pay for equal work now, join a union. There aren't any union contracts that say: Oh, we are going to pay men up here and women over here, not 79 cents on the dollar for a woman in a labor union.
So I encourage my friends--my sisters--to join a union.
Marc Veasey and Brendan Boyle are both the co-chairs of what we call the Blue Collar Caucus. I am part of it. Notice my blue collar today.
Mr. Speaker, I am a proud member of that caucus because workers, as we know, are just not getting a fair deal right now in today's economy. The U.S. is the richest country in the world and in the history of the world. We are richer than we have ever been. Now, most people don't actually feel that because the ordinary worker has not seen any wage growth in the last 2, maybe 2\1/2\ or 3 decades. The income gap between top executives and the average worker is bigger than ever. At the same time, corporations are raking in record profits as they ship jobs overseas.
So, obviously, it is time for us to fix the economy that is rigged against America's working families. We can start with our Tax Code or end with our Tax Code or in the middle with our Tax Code. We need to do something about our Tax Code.
So today I am joining with Congressmen Boyle and Veasey to introduce--we introduced just a few minutes ago--the Patriot Employer Act, and that is H.R. 3925. It is a first step toward fixing a broken tax system.
Instead of giving tax breaks to companies that offshore jobs and that pay poverty wages, our bill encourages businesses to create good jobs here at home.
Here is how the bill works. We reward patriot employers with a tax credit for each employee's wages. To qualify for the patriot employers tax credit, a business must fulfill the following checklist:
One, invest in American jobs, no offshoring or tax inversion schemes;
Two, pay living wages;
Three, contribute to workers' retirement security through a defined benefit or defined contribution plan;
Four, provide quality health insurance;
Five, provide paid leave;
Six, and lastly, have practices in place to support employment of our troops, our veterans, and people with disabilities.
There is a companion bill that was introduced by Senator Sherrod Brown, and I am sure he will get more cosponsors.
Small businesses, under 50 employees, can qualify for the tax credits by meeting only some of these criteria.
Unlike the Trump-GOP tax giveaway proposal, our bill is responsible. It pays for the new tax credits by closing existing tax loopholes that incentivize corporations to invest overseas. I think most Americans get that there is actually an advantage now for companies who decide to take their jobs out of the United States.
Under the current Tax Code, multinational corporations get to defer taxes on overseas earnings until they bring those profits back to the United States. Through creative accounting, corporations essentially get to avoid taxes in perpetuity. That is forever.
At the same time, those corporations can deduct interest expenses on investments overseas, such as building a new manufacturing plant somewhere. That is totally backward. We are rewarding corporations that are avoiding U.S. taxes and offshoring American jobs.
That is exactly right, Mr. Speaker. If a corporation deducts interest expenses on investments overseas, and that would include building a new manufacturing plant offshore somewhere.
So we don't want to be rewarding corporations that are avoiding U.S. taxes and offshoring American jobs and giving them benefits. So the Patriot Employer Act fixes that. It raises taxes on corporations that offshore and reduces taxes on businesses that invest in good, American jobs.
The President talks about America first. This is exactly the kind of thing that we should be doing. Let's not create incentives to take those jobs away. But still, the Trump-GOP tax plan is a betrayal of American workers. I don't know if he knows that. It does nothing to raise wages. In fact, 80 percent of the plan's tax cuts would go to the top 1 percent of earners.
At the same time, 30 percent of middle class families--$50,000 to $150,000--would actually see a tax increase under the plan.
As for corporate taxes, it doubles down on the problem in the current Tax Code. While our current Tax Code lets multinationals put off paying taxes on offshore profits, the new Republican plan would give permanent tax breaks for offshoring.
The Republican tax plan means less revenue for investments that grow the middle class, like education and infrastructure, which we need so badly, which he said he wanted to do. We want to do it with him. It means more
jobs shipped abroad. For many middle class families, it would mean a smaller paycheck.
So we are offering a different path. The Patriot Employer Act, together with stronger unions and greater public investment, offers a real solution to the growing inequity in our country.
There are responsible businesses in our country. If a business pays fair wages and provides good benefits, we should support that. We shouldn't make them compete with corporations that don't.
In the end, it is a question of whose side are you on: the offshoring corporation or the American worker?
Mr. Speaker, I urge my House colleagues to reject tax cuts for millionaires, billionaires, and multinational corporations, and to invest in American workers and not offshoring.
So I just want to thank the gentleman from California so much for letting me come today and talk about this new bill that was introduced. I think it is totally consistent with our better deal, better wages, better future, and better jobs for America. I thank Congressman Garamendi so much for his leadership on this issue.
Mr. Speaker, I am going to come to the gentleman right now and get his signature.