Former presidential candidate and U.S. Sen. Bernie Sanders will introduce legislation to discourage companies from relocating jobs offshore. The legislation would punish offshore decisions with loss of tax breaks and government contracts and impose an “outsourcing tax” on firms that proceed nonetheless.

The proposal, announced this weekend, singles out United Technologies for its decision to close its Carrier Corp. manufacturing plant in Indianapolis and relocate operations to Mexico.

Sander’s proposal is ostensibly aimed at manufacturing relocations, but his proposal is broad enough that it may affect IT offshoring decisions as well. Most affected will likely be those firms that do both, namely large IT companies that receive government contracts and also run manufacturing and software development operations here and abroad.

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