Politics

Biden to Unveil Plan to Penalize Offshoring and Incentivize Domestic Production

Democratic presidential nominee Joe Biden is expected to unveil a new push to fight offshoring through a combination of incentives and penalties.

Bidens bid, which his adviser said he will announce as he visits the battleground state of Michigan, is to include a proposal to tax companies that offshore and to offer incentives for them to invest in operations in America. His adviser said Biden will, during his visit to the Detroit suburb of Warren on Wednesday, pitch an “offshoring tax penalty” on profits from products made overseas and sold in the United States. Having already floated the idea of increasing the corporate tax rate from 21 percent to 28 percent, Bidens new plan would tax profits from offshore operations at a rate of 30.8 percent.

As an incentive to reshore, Biden would give a 10 percent tax credit for companies that reopen facilities that have been shut down or are closing. Other corporate actions that would qualify for an incentive include expanding domestic manufacturing payroll and refurbishing plants to improve competitiveness and boost employment in the manufacturing industry, The Hill reports.

During his visit to Michigan, a must-win state that Democrats narrowly lost in 2016, Biden is also expected to detail some executive orders he would take as president that would ensure the government buys more products that are American-made.

The plan is part of a broader Biden strategy to hone in on economic matters, which have tended to be President Donald Trumps strong suit. While Trumps approval on the economy fell as the outbreak of the Chinese Communist Party (CCP) virus drove lockdowns and historic job losses, the downward trend bottomed in early August and the presidents approval on the economy has since been on the rise.

Trump, along with economic experts in his administration like Larry Kudlow, have repeatedly touted the dynamics of the post-outbreak economic rebound across a number of measures, including retail sales, factory numbers, and the stock market. While lagging in the hardest-hit industries like travel and entertainment and with still around 10 million fewer jobs in the economy than before the outbreak, the rebound has, on the whole, been sharp. Recent Labor Department figures show (pdf) that the U.S. economy added 1.4 million jobs in August, which comes on the back of jobs rising by 1.8 million in July, 4.8 million in June, and 2.5 million in May, bringing the total jobs created in the past 4 months to a record 10.5 million. Two of the three major Wall Street stock Read More From Source

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