Crowley Votes to Save and Create American Jobs While Reducing the Deficit

Aug 10, 2010 Issues: Economy and Jobs

Washington, D.C. —Congressman Joseph Crowley (D-Queens, the Bronx), one of nine chief deputy whips, voted in support of the Education Jobs and Medicaid Assistance Act (H.R. 1586), a fully paid-for bill that will save and create over 300,000 jobs. The fiscally responsible bill, which is paid for by closing tax loopholes that reward corporations that are shipping jobs overseas, will reduce the federal deficit by an estimated $1.4 billion over 10 years. The bill passed by a vote of 247 to 161. The Senate passed the bill on August 5, 2010, and it will now be sent to the President for his signature.

“Having well-trained cops on the beat and skilled teachers in the classroom is vital to the safety and success of our community,” said Congressman Crowley. “The Democratic Congress is working hard to create jobs, educate our future workforce, strengthen our economy and reduce our federal deficit, and this bill is another positive step in turning these goals into reality.”

The Education Jobs and Medicaid Assistance Act is $26.1 billion funding package that will provide $10 billion for education jobs and $16.1 billion in additional Medicaid assistance to states that, by reducing shortfalls, will help keep many others on the job, including police officers and firefighters. According to estimates from the Department of Education, the $10 billion education funding will save 161,000 teacher jobs, including 8,200 in New York. The Economic Policy Institute (EPI) estimates that the Medicaid funds will save and create 158,000 jobs, including preventing layoffs of police officers and firefighters. More than half of these jobs will be in the private sector, including workers who contract for or supply services to state and local governments.

The bill is paid for by closing numerous tax loopholes that cost the U.S. billions of much-needed dollars and incentivize companies to ship American jobs overseas, including:

  • Shutting down the practice of subsidizing U.S. corporations that are sending jobs overseas at the expense of U.S. taxpayers by giving them tax benefits for their offshore operations;
  • Requiring companies that take tax breaks for income earned abroad to declare that earned income in the U.S.;
  • Ending the taxpayer subsidy of corporate multinational tax breaks on income that is not even taxed in the U.S.; and
  • Eliminating a loophole that was exploited by a subsidiary of AIG to avoid paying U.S. taxes, all while U.S. taxpayers funds were used to save the company from failure.

“This bill is not only fiscally responsible in that it helps to reduce the deficit, it is also fully paid for by cracking down on billions of dollars in tax loopholes that reward companies for shipping jobs overseas – ensuring that even more American jobs are saved,” said Crowley.

Congress’ full attention is on creating jobs and stabilizing and strengthening the economy. Last December, the House passed the Jobs for Main Street Act and earlier this year President Obama signed into law the HIRE Act, which provides incentives for businesses to hire workers. These bills included critical investments in small businesses, state infrastructure projects such as school construction, and support for job training programs that are keeping police and firefighters on the street and teachers in classrooms.

Congressman Crowley is the six-term representative from the 7th Congressional District of New York, which includes sections of Queens and the Bronx. He is a member of the powerful Ways and Means Committee, which has jurisdiction over tax policy. He is also a member of the Committee on Foreign Affairs.

###