Democratic presidential nominee Joe Biden on Wednesday will propose changes to the corporate tax code to incentivize investments in American manufacturing and punish U.S. companies that offshore jobs.
Biden is proposing a 10% tax penalty on companies that move their operations overseas and a 10% tax credit for companies that create manufacturing jobs in the United States, his campaign said. Biden’s plan would also close several tax “loopholes” in Trump’s 2017 tax law that the campaign claims allows American companies to shield their profits made abroad from full taxation.
The former vice president will travel to the battleground state of Michigan on Wednesday to propose the new tax policies in a speech that will focus on economic issues.
“The Biden-Harris tax policy, therefore, will not only penalize the offshoring of American jobs, it will reward those who invest and create jobs here in America,” the Biden campaign said in a document regarding the new tax plan.
“That is why Joe Biden will reverse Trump’s historic corporate giveaway and offshoring loopholes and devote a portion of those funds to reward those who hire American and invest in America,” the campaign said.
[Related: Kudlow: Biden tax increases will prompt corporate exodus from US]
Biden will also promise to use a series of executive actions during his first week in office to authorize the federal government to buy American products and support American supply chains.
His tax plan is part of a broader initiative to take on President Trump on economic issues, particularly addressing the president’s protectionist policies.
