The Hindu Business Line : US House votes on Foreign Aid Bill

THE US House of Representatives has voted on a $19.4-billion Foreign Aid Bill that has not only goodies for those nations, such as Pakistan, that are benefiting from the war on terrorism, but also a message to American companies: Don't come to Washington, D.C. looking for low-cost federal loans if you're seeking to lower your tax bills by moving jobs overseas.

The Republican-led House voted 270 to 132 to block Export-Import Bank loans to companies that moved their offices to other countries, essentially staying in line with the election year rhetoric that Democrats and some Republicans have latched on to.

Congressman Mr Bernard Sanders of Vermont, who was the main sponsor of the proposal to block loans to American companies taking their jobs overseas, argued that the people of this country are "outraged by companies that come begging to Washington for corporate welfare and taxpayer dollars while they move to tax haven committees."

Opponents of the measure argued in vain that the federal loans were designed for only American exporting companies and that locals would be hurt by the move. "It hurts workers in this country. It hurts the economy of this country," argued Mr Jim Kolbe, a Republican from Arizona.

The House passage of the Foreign Aid Bill — which incidentally had some $700 million for Pakistan in economic and military assistance and about $100 million for India by way of funding ongoing projects in socio-economic areas — including the language on outsourcing is not the final word on the subject. The Senate will have to write its version and the two Chambers will have to reconcile the differences before the final Bill goes to the White House.