LANSING – State Representatives Lisa Wojno (D-Warren/Center Line), Frank Accavitti (D-Eastpointe), Steve Bieda (D-Warren) and Fred Miller (D-Mount Clemens) today announced that the Michigan House of Representatives passed legislation to ensure greater public accountability of state contracts with businesses that hire foreign workers. The plan would require that the Legislature be informed about state agencies contracting with corporations that either rely on outsourced labor or avoid paying state and federal taxes by using offshore tax havens.
"The public has a right to know when their tax dollars go to companies that ship jobs overseas," said Wojno,who introduced the proposal. "The public deserves to know which corporations are skirting taxes while still reaping the benefits of doing business in the state. The hard-earned tax dollars of our residents should not be underwriting contracts with firms that have fled offshore to avoid their corporate responsibilities here at home."
Under this plan, the state Department of Management and Budget (DMB) will report to the Legislature on goods and services that state agencies purchase from businesses that have incorporated in tax havens such as Bermuda or the Cayman Islands. These companies avoid paying state and federal taxes, which shifts the burden to individual taxpayers and other businesses.
"It is vital that we have transparency in government," Accavitti said. "It's the duty of lawmakers to fight on behalf of our hard-working men and women, and I introduced this plan to ensure that the Legislature is fully informed about any business conducted with companies that avoid paying their fair share of taxes."
The proposal would also require that lawmakers know about products manufactured by outsourced workers — specifically, employees who lack valid visas or are not U.S. citizens or legal resident aliens.
"Companies that retreat to overseas tax havens have an unfair advantage when making competitive bids," Bieda said. "They're not playing by the rules, and that is wrong."
The bill would require that the DMB begin reporting to the Legislature on Jan. 1, 2008.
"We need to reward companies that choose to stay in Michigan," Miller said. "The businesses that stay in our state strengthen our communities and help ensure that we continue to have essential services such as health care and police protection."