# End Outsourcing Act: Plain Language Summary

The End Outsourcing Act is designed to discourage American companies from moving jobs overseas by changing how the tax system treats them. Right now, companies can deduct certain business expenses even when they're outsourcing work to other countries. This bill would eliminate or reduce those tax deductions specifically for companies that move jobs abroad, making it more expensive for them to outsource. The idea is that by removing these tax breaks, companies will have a financial incentive to keep jobs in the United States instead.

The bill would affect large corporations and businesses that currently outsource work to foreign countries. If a company decides to move a job overseas, they would lose certain tax deductions they might otherwise claim, which means they'd pay more in taxes. This increases the cost of outsourcing and theoretically makes it more attractive to keep operations and jobs domestic. For workers and communities, the intended benefit is job preservation—if outsourcing becomes more expensive, companies might choose to maintain or create jobs at home instead.

The practical impact depends on how sensitive companies are to these tax changes. Some businesses might decide the tax penalty isn't worth the savings they'd get from cheaper overseas labor, so they'd keep jobs in America. Others might absorb the higher taxes and continue outsourcing anyway. The bill essentially uses the tax code as a tool to make a policy statement: the government is trying to make it financially disadvantageous to move American jobs overseas, though whether companies actually respond by keeping jobs domestic remains to be seen.

End Outsourcing Act

Gillibrand, Kirsten E.

End Outsourcing Act This bill addresses the outsourcing (transfer) of jobs and companies from the United States to low-tax foreign jurisdictions. The bill (1) requires employers to include an outsourcing statement in worker adjustment and retraining notices; (2) denies employers a tax deduction for outsourcing expenses, including license fees and equipment installation costs; (3) allows a tax credit for similar insourcing expenses; (4) denies employers the use of certain favorable accounting methods and a deduction for interest paid on indebtedness; and (5) requires the recapture of certain tax credit amounts allowed to outsourcing employers. The bill authorizes federal contracting officers to take the outsourcing of jobs from the United States into account in awarding contracts and grants and extending loans and loan guarantees to corporations.