Anti outsourcing bill fails in US Senate

WASHINGTON, USA: Giving a chance for the Indian IT firms to heave a sigh of relief, United States' Republican Senates on Tuesday successfully blocked the passage of an anti-offshoring bill that would have denied tax breaks to US companies which move jobs overseas.

In a 53-45 vote, the Republicans prevented the bill from overcoming a filibuster, while the senate needed at least 60 votes to overcome the Opposition's obstruction.

As per the bill, there would be a ban on government contractors from using American taxpayers' money to move jobs offshore.

The bill included a provision of payroll tax exemption for firms that move jobs to the US, apart from the provisions to prevent businesses from deferring US taxes on the income they make from foreign subsidiaries.

In the recent times, Obama Administration had resorted to many populist moves to create more job opportunities in the US. However, such moves were threatening to outsourcing destinations like India. The decision to increase the visa fee had also invited criticism and the Indian IT companies said that they might pass the increased costs to their clients in the U.S.

Frustrated at the Republicans' move to falter the bill, a Democrat senator Harry Reid said the bill was based on simple common sense, and the Republican policies have cost 8 million Americans their jobs.

“Republicans continued their job-killing agenda today by protecting these tax breaks for CEOs who offshore American jobs... We should stop forcing taxpayers in Nevada and across the nation to pay for giveaways that reward companies for sending American jobs overseas,” he said.