Biden unveils plan to penalize companies that offshore jobs ahead of Michigan visit
Democratic presidential nominee Joe Biden unveiled a plan to punish companies that send jobs overseas ahead of his visit to Michigan on Wednesday.
The former vice president vowed to develop a “Made in America” tax policy that will penalize corporations that move jobs overseas and provide a tax credit to those who keep manufacturing in the U.S.
His campaign announced a Biden administration would punish companies that offshore manufacturing and service jobs, specifically to sell the goods and services back to the U.S. Companies would pay a 30.8 percent tax rate on profits made through this practice.
Biden would also institute a 10 percent tax credit for companies that revitalize closed or closing facilities, revamp any facility to improve competitiveness and employment in the manufacturing industry, reshore job-creating production, expand U.S. facilities to increase employment or improve manufacturing payroll.
In his proposal, Biden said that while President Trump advocates for an end to offshoring jobs, his policies put “multinational corporate interests over American workers.”
Biden promised to close a “loophole” in Trump’s 2017 tax plan that permits U.S. companies to offshore production or call centers and pay no taxes on their first 10 percent in profit.
Biden also pledged to implement a 21 percent minimum tax on all foreign earnings of U.S. companies and to ensure the minimum tax applies to earnings in each foreign country to prevent corporations from seeking out tax havens.
The former vice president said he would use executive orders within his first week as president to enforce existing Buy American rules, make Buy American rules stricter for public infrastructure projects, make American products more competitive in public procurement and ensure critical materials like medicine be made with U.S. original components.
His orders would also punish companies that falsely label products as made in America and create a new “Made in America” office in the White House Office of Management and Budget.
Biden’s plan comes ahead of his visit to Michigan on Wednesday, a competitive swing state known for its manufacturing jobs in the automotive industry.
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