[Congressional Record (Bound Edition), Volume 161 (2015), Part 6]
[Senate]
[Pages 8405-8406]
[From the U.S. Government Publishing Office, www.gpo.gov]




                    PATRIOT EMPLOYER TAX CREDIT ACT

  Mr. DURBIN. Mr. President, as the number of candidates grows for the 
office of President, we are hearing a lot of proposals for changes in 
the Tax Code. Many of them are interesting, and some of them are 
damaging when it comes to working for middle-income families.
  Sadly, we are seeing a race to the bottom on who can propose the 
lowest corporate tax rate, giving huge breaks to the very companies 
that shift jobs overseas. Most Americans don't realize this. If you 
want to move your production from the United States to another country, 
you can deduct the moving expenses from the taxes you owe America. We 
are subsidizing your decision to pick up and move jobs overseas. 
American workers--some of them are given the sad responsibility to 
train the supervisors at the new overseas companies while American 
workers are checking out their last paychecks.
  I have a different idea. Instead of rewarding corporations with lower 
tax bills, we should reward those companies in America that maintain 
their commitment to this country and its workers and give fair wages 
and benefits to the American workers. We call it the Patriot Employer 
Tax Credit Act. It is very basic.
  When you look at the Tax Code, it is a huge document full of 
incentives and disincentives for businesses. We will reward certain 
things; we won't reward other things. Well, this is something we should 
consider rewarding.
  Senator Sherrod Brown and I have introduced the Patriot Employer Tax 
Credit Act, which would provide a tax credit to American companies that 
treat American veterans and workers the best. It puts the Tax Code on 
the side of these companies. These patriot employers would be eligible 
for a tax credit equal to 10 percent of the first $15,000 of qualified 
wages for American workers, which is about $1,200 per worker.
  In order to qualify for this tax credit, these companies would have 
to meet five criteria. See if you think, as I do, that these are good 
ideas.
  First, the company has to invest in American jobs. Businesses must 
remain headquartered here in the United States if they have ever been 
headquartered here before. The company would also have to maintain or 
increase the number of workers in the United States compared to the 
number of workers overseas, and not decrease the number of workers 
through the use of contractors. The company can't pick up and leave, 
move to a foreign capital to avoid paying its fair share of U.S. taxes.
  First, invest in American jobs located in America.
  Second, pay fair wages. A patriot employer under our bill would have 
to pay at least 90 percent of its employees $15 an hour. Why do we pick 
$15 an hour? Do the math: $15 an hour, 40 hours a week, about $30,000 a 
year. Why? Because if you make that amount of money, you qualify for 
virtually no Federal subsidies, Federal programs. You are earning a 
paycheck and you are supporting your family. If you make less than 
that, you qualify for Federal Government assistance. So we are saying 
to employers: If you will pay at least $15 an hour, we will give you 
this tax credit.
  Third, provide quality health insurance for your employees consistent 
with the Affordable Care Act.
  Fourth, help your employees prepare for retirement. We want to reward 
companies that offer at least 90 percent of their employees a defined 
benefit plan, such as a pension plan or a defined contribution plan 
with decent employer contributions.
  Fifth, employ a diverse workforce. We want companies to have a plan 
in place to help veterans and people with disabilities. I don't think 
that is too much to ask. We grab our flags and march in parades as 
politicians and thank the veterans over and over. Why don't we thank 
them with a job? And let's reward the companies that do.
  That is it, five conditions. And with these five conditions, these 
patriotic American companies would get a tax break. Wouldn't it be 
better for us to incentivize American companies to do the right thing 
rather than pay the moving expenses for those that want to leave the 
country? That is a choice. I think it is pretty simple.
  I know it can be done because in Skokie, IL, there is a company doing 
it. It is called Block Steel. The company started 100 years ago and has 
grown to be the largest distributor of aluminized steel in the Nation. 
It is a family-run business. It has ensured that 77 employees are 
treated fairly. Each of their employees is paid more than $15 an hour, 
has good health care, and a good retirement. Block Steel should be 
rewarded for its efforts. Under the Patriot Employer Tax Credit Act, 
Block Steel could qualify for a tax credit of up to $100,000. That is 
money they can invest in their business and grow it, with even more 
people working.
  As this debate about tax reform continues, I hope we focus on 
rewarding companies that really care about America. We shouldn't be 
blindly focused on a race to the bottom to the lowest wages. And, I 
might add, this is paid for. It is paid for by eliminating the 
deduction for moving businesses overseas that is currently part of the 
Tax Code.
  So let's reform the Tax Code the right way, with an eye on helping 
the workers get a decent paycheck, decent benefits, and rewarding the 
companies that put American workers first.
  I thank Senators Sherrod Brown, Elizabeth Warren, Jack Reed, Tammy 
Baldwin, and Bernie Sanders for lending their support to this important 
bill. I look forward to continuing our fight for working families here 
in the Senate.
  Mr. President, I yield the floor.
  I suggest the absence of a quorum.
  The PRESIDING OFFICER. The clerk will call the roll.
  The senior assistant legislative clerk proceeded to call the roll.
  Mr. McCAIN. Mr. President, I ask unanimous consent that the order for 
the quorum call be rescinded.
  The PRESIDING OFFICER (Mr. Sullivan). Without objection, it is so 
ordered.

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