GOP blocks tax hike on firms moving overseas

WASHINGTON – Republican senators blocked an election-year bill Wednesday to limit tax breaks for U.S. companies that move operations overseas.

The bill would have prohibited companies from deducting expenses related to moving their operations to a foreign country. It also would have offered tax credits to companies that move operations to the U.S. from a foreign country.

The Senate voted 54-42 to end debate on the bill, six short of the 60 votes needed to advance it. The White House says President Barack Obama supports the legislation.

“Today in the United States, any time an American company closes a factory or plant in America and moves operations to another country, the American taxpayers pick up part of that moving bill,” said Senate Majority Leader Harry Reid, D-Nev. “Frankly, a vote against this bill is a vote against American jobs.”

Republicans called the bill an election-year stunt. They noted that Democrats tried to pass a similar bill two years ago, right before the last congressional elections.