A recent U.S. Senate jobs bill, designed to address the 9.6% unemployment rate in the U.S., failed to get up this week at a U.S. Senate vote.

Those in favor of the draft jobs bill, such as Senate Majority Leader Harry M. Reid (D-Nev.) believe the bill will facilitate the keeping of “American jobs” in America.  Proponents of the bill believe American tax payers are being shorted by companies that operate in the U.S. for tax purposes, but, in reality offshore manufacturing jobs, to the detriment of U.S. workers.

Opponents of the bill believe it is a ‘political’ stunt, designed to appeal to the constituents of U.S. Senators who are about to enter into November midterm elections, and will do nothing but damage the U.S. reputation in the global business world.

Some of the contentious elements of the draft bill included provisions to:

•    end tax deductions for expenses incurred when companies close or reduce U.S. operations and shift the work overseas;

•    impose a new tax on products once made in the U.S., but, now are made outside the U.S.; and

•    offer a 2 year payroll tax pardon to companies that re-patriate jobs from other countries back into the U.S..

Where ever you fall in the debate, it cannot be disputed that the issues of retaining American jobs in America and “offshoring” jobs from America are hot topics for all businesses trading in the U.S., and will likely be the focus of U.S. legislation for the next 12 months whilst the US economy seeks to strengthen itself following the Global Financial Crisis.