WASHINGTON, DC- Congresswoman Lynn Woolsey (D-Petaluma) is an original co-sponsor of the Patriot Corporations of America Act, a bill being introduced today by Rep. Jan Schakowsky (D-IL) to reward companies with tax breaks and preferences in federal contracting for investing domestically and providing fair wages and good working conditions.

The Patriot Corporations for America Act aims to reverse the current trend of giving tax breaks, subsidies and government contracts to companies that outsource jobs, exploit their workers and avoid paying taxes.

“Outsourcing is having a devastating economic impact on American families around the nation,” said Rep. Woolsey.  “As we prepare next week to celebrate the birth of our nation, we should recommit ourselves to investing in America -- by rewarding companies that show they care about our communities and our workers."

Under the Patriot Corporations for America Act, companies that meet certain standards will receive a 5% tax reduction and preferential treatment for government contracts.  Companies are eligible for these incentives if they produce at least 90% of their goods and services in the US, invest at least 50% of their research and development budget domestically, and cover at least 70% of the cost of health insurance plans for their employees among other qualifications.

The following are Woolsey’s remarks regarding the introduction of the Patriot Corporations for America Act:

 

“‘Patriotism’ is a word that’s been thrown around rather promiscuously over the last few years.  Many have been eager to declare themselves patriots while casting aspersions on the patriotism of others.  We even have a far-reaching law that has taken the name “The PATRIOT Act”, even though I would argue that that bill is not at all consistent with American values.

 

“But patriotism must not be defined as enthusiasm for rolling back civil liberties.  And you shouldn’t get your patriot badge for being a cheerleader for a disastrous war that has taken the lives of over 2,500 Americans.  Real patriotism is about compassion for the people of America-- workers, families and communities.

 

“Our tax code and economic policy, for example, could use a little more patriotism…and   that’s exactly what our Patriot Corporations for America Act does.  Right now, we’re providing all the wrong incentives.  We’re essentially paying companies to avoid paying taxes and to create jobs overseas instead of investing in their own country.  And if the majority in the Congress had their druthers, there would be no estate tax at all, thus subsidizing those who happen to be born into wealth…while those who work hard and create American jobs continue to get squeezed.

 

“Our bill would turn all of that on its head.  Companies would be rewarded for progressive policies and good corporate citizenship – for domestic production; for employee profit-sharing plans; for generous pensions and health benefits; for sound labor and environmental practices; and more.

 

“And this bill wouldn’t add a dime to the federal deficit; it would be paid for by closing loopholes that encourage moving businesses offshore and by taking away some of the new upper-bracket tax breaks.

 

“It’s time we celebrated a new patriotism…one that creates prosperity here at home rather than inciting civil war abroad…one that has more to do with empowering American workers than invading other nations.”