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After Carrier: New plan to keep companies in US

Posted at 2:33 PM, May 18, 2016
and last updated 2016-05-19 07:52:34-04

WASHINGTON, D.C. -- Indiana Senator Joe Donnelly offered a proposal Wednesday to prevent future loss of Hoosier and American jobs to other countries.

The proposal would reward companies that invest in the U.S. and penalize those that move jobs to countries like Mexico and China.

Donnelly's recommendations follow last February's announcement that Carrier would move 1,400 jobs from Indianapolis to Monterrey, Mexico.

We have an obligation to try to prevent the next Carrier and ensure that federal policies are designed to benefit the U.S. economy and that we encourage investment in the foundation of our economy—American workers, their families, and communities.

The recommendations would do the following:

  1. Prevent companies that move out of the country from writing off moving costs
  2. Force companies to pay back grants and tax breaks received at facilities that are being moved out of U.S.
  3. When awarding federal contracts, evaluate whether the bidding company has pursued cheaper foreign labor at the expense of American workers in the past
  4. Offer tax breaks to companies that bring jobs back from foreign countries to low-income and rural communities in the US

Sen. Donnelly’s proposals are detailed in a white paper, “Investing in America: A Policy Framework to Stop Corporate Offshoring and Strengthen the Middle Class."

He also sent a letterto the Senate Finance Committee, requesting that the policy recommendations be included in any tax reform effort. 

United Technologies responded to Donnelly's remarks accusing the company of being unpatriotic with the following statement:

"These statements are irresponsible, misguided and have no basis in fact. They are insulting to United Technologies’ 40,000 patriotic aerospace employees in the U.S., including 7,000 veterans, who take great pride in their work. Last year, UTC spent more than $11 billion with U.S. suppliers, including over $320 million with Indiana businesses alone. It is unseemly that Senator Donnelly is playing politics with our national defense and with the people of Indiana."

Watch our four-part documentary series on Carrier below.

 

FULL COVERAGE: TIMELINE: Carrier to ship 1,400 jobs from Indiana to Mexico |  Hogsett calls on Carrier to return $1.2M within 30 days Coats, Donnelly have 'disappointing' meeting with Carrier execs | IEDC responds to Sen. Donnelly's comments on Carrier |  Sen. Donnelly: Carrier never cited federal regulations as reason for move | Union president: 'We're not going away quietly' | Carrier employees protest move at statehouse| Pence on Carrier meeting: 'I don't want to create any false hope for people' Moving to Mexico: What you need to know about Monterrey, Mexico  | Moving to Mexico: On the ground in Monterrey, Mexico, where Carrier is moving  Trump weights in on Carrier relocation to Mexico  | Carrier: Company did not receive $5M in federal stimulus funds  | President of United Steelworkers Union: No hope of saving 1,400 jobs  | Carrier employees, local businesses reel after announcement of move to Mexico  | WATCH: Employees react to news that Carrier is moving from Indy to Mexico  | Pence to review Carrier's plans to move to Mexico  | TRUMP: Carrier should be taxed for their goods after move to Mexico  | Hogsett, Donnelly meet with Carrier workers  | City, state stepping in to help Carrier employees | Indiana leaders ask Carrier for a meeting to try to keep the plant, jobs in the state