LANSING, Mich., Sept. 19, 2023 — State Rep. Nate Shannon (D-Sterling Heights) introduced House Bill 5008 last week. This bill, which Shannon also introduced last term, eliminates business tax deductions for outsourcing expenses.
“I introduced this legislation for the prosperity and wellbeing of Michiganders. We can’t reward corporations for sending jobs overseas,” Shannon said. “Without this incentive, businesses will be more inclined to create and retain jobs right here in Michigan, putting our friends and neighbors to work and strengthening our economy.”
Under the current federal tax law, corporation deductions are permitted for certain expenses in regards to outsourcing, thereby incentivizing these corporations to outsource Michigan jobs and pay less in taxes. HB 5008 would maintain and protect the job market by eliminating those special tax incentives, which drive out employment opportunities for hardworking Michiganders. HB 5008 builds on the “Make it in Michigan” budget that invests in job training to help more Michiganders secure a good-paying job.
“We want to encourage Michigan businesses to keep their work at home where jobs are abundant and where dollars are invested in putting our people first — my legislation demonstrates that commitment,” Shannon continued. “We need our corporations to do their part, and we cannot incentivize them to send opportunities to other countries. When Michigan businesses hire Michigan workers for their labor, our entire state wins.”