Senate Republicans successfully blocked the passage of an anti-offshoring Bill that would have denied tax breaks to US companies, which move jobs overseas.
Republicans in a 53-45 vote prevented the Bill from overcoming a filibuster. At least 60 votes were needed to overcome the Opposition’s obstruction.
According to the Bill, there will be a ban on government contractors from using American taxpay-ers’ money to move jobs offshore.
What was seen as an electoral populist move, the Creating American Jobs and End Offshoring Act aimed at small manufacturers and included a payroll tax exemption for firms that moved jobs to the US. But the Bill also contained provisions to prevent businesses from deferring US taxes on the income they make from foreign subsidiaries.
Indian IT honchos had said the Bill won’t make much of an impact on India. However, they warned that US companies operating in other countries may be beaten by the same stick.
Several business groups such as the National Association of Manufacturers strongly opposed the legislation. It had sent a letter to senators arguing the measure would make US companies less competitive and hurt job creation.
