Statement by Kirsten Gillibrand: Trump Failed to Stop Companies from Shipping Jobs Overseas. Here's My Plan to Fix It.
No more broken promises — I'll protect American jobs and hold outsourcers accountable.
The American Dream is built on the idea that in America, anyone who works hard can earn their way to a better life. We are the land of opportunity. But what happens when American companies start sending that opportunity elsewhere? We can't let working families and communities be left out in the cold.
President Trump's broken promise
When President Trump was a candidate, he promised working families that he would stop companies from outsourcing jobs, bring jobs back to the Rustbelt, and protect jobs here at home. Not only did he fail to deliver on that promise — he gave massive tax breaks to the very same companies he said he'd hold accountable.
In 2017, President Trump passed a millionaire-handout tax bill that gave companies like General Motors hundreds of millions of dollars in tax benefits. They didn't use that money to raise wages or create more jobs like Republicans said they would — instead, the companies used it to inflate share prices and line their executives' pockets. Then they turned around and started moving their jobs out of the country, closing manufacturing plants, and leaving working communities here at home struggling to make ends meet. That decision cost towns like Lordstown, OH over 1,600 jobs at the GM plant, almost 3,000 jobs in the regional economy, and over $3 billion in lost economic output. And we know that the cost to communities with major job loss can't only be measured in dollar amounts.
President Trump may sleep soundly while executives get richer and American families lose their livelihood, but I plan to do something about it.
How I'll fix it
Unlike President Trump, I'll hold companies that outsource jobs accountable for the damage they cause to communities and their employees. And then I'll make sure those workers have the support they need to get back on their feet. Here's how:
I'll enact a Deadbeat Company Tax to penalize and disincentivize outsourcing.
First, we'll establish a Deadbeat Company Tax to punish large corporations that move substantial business operations and jobs overseas. If a large company moves 25 or more jobs overseas, they will experience financial penalties and clawbacks of local, state, and federal funds. This includes:
- A tax equivalent to the cumulative local and state incentives received over 10 years.
- An additional 15% Abandonment Tax on the total economic value of any capital assets that are moved out of the United States
- An end to federal contracts, major penalties for consideration of future federal contracts, and clawback of federal tax credits and grants that supported the facility.
I'll direct revenue from the Deadbeat Company Tax to help the community.
The revenue collected from this tax will be funneled directly back into a community-specific trust fund for the impacted city or town. This would be administered by a local board, to help local governments replace lost revenue, sustain needed community services, and rebuild their economy.
I'll establish an economic disaster aid fund to support communities facing major job loss.
Next, I'll establish an economic disaster aid fund so communities aren't left on their own in responding to layoffs. This new job loss recovery fund will be able to rapidly respond to economic disasters in the way FEMA responds to natural disasters. When towns, cities, or states declare an economic disaster, the fund will make federal resources available to their communities and workers for things like:
- infrastructure investment
- grants for job creation
- assistance for small businesses and job training
- mortgage payment loans
- other types of assistance essential to economic recovery
Working families built this country, and they deserve leaders who will protect their opportunity to live the American Dream. As president, I promise to fight for workers the same way President Trump fights for executives. And no corporation will stand in my way.
Kirsten Gillibrand, Statement by Kirsten Gillibrand: Trump Failed to Stop Companies from Shipping Jobs Overseas. Here's My Plan to Fix It. Online by Gerhard Peters and John T. Woolley, The American Presidency Project https://www.presidency.ucsb.edu/node/365104