A month after US President Barack Obama came out with 'Say No to Bangalore and yes to Buffalo' rhetoric, which now echoes in the corridors of Capitol Hill, American companies have launched a campaign against the new law that ends tax incentives to those firms which create jobs overseas.

The Technology CEO Council, a Washington-based advocacy group of US American tech-companies, on Tuesday released a report which revealed that the policy to end "tax breaks" announced by Obama would result in a job loss of as many as 2.2 million Americans.

The report commissioned by the Council has been authored by Robert J Shapiro, a former Clinton administration economic official, and Aparna Mathur, a Research Fellow at the American Enterprise Institute.

Besides affecting jobs, investments in the US in plant, equipment and property could fall by as much as USD 84.2 billion. Repealing or sharply limiting deferral would not generate large tax revenues, since substantial job losses, wage cuts and lower investments would reduce tax revenues, the report said.

On May 5, Obama had announced end to years of tax incentives to those companies which create jobs overseas in places like Bangalore. Instead the incentives would now go to those creating jobs inside the US, in places like Buffalo city, bordering Canada in upstate New York.

"We will stop letting American companies that create jobs overseas take deductions on their expenses when they do not pay any American taxes on their profits," Obama said.

"We will use the savings to give tax cuts to companies that are investing in research and development here at home so that we can jumpstart job creation, foster innovation, and enhance America's competitiveness," he said.

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