President Trump, Joe Biden exchange jabs in latest political ads; reaction and analysis from the ‘Special Report’ All-Stars.
Key features of “The Biden-Harris Plan to Fight for Workers by Delivering on Buy America and Make It in America” include a penalty against American companies that offshore manufacturing and service jobs to other countries and then sell back to the U.S. market. It also calls for a “Made in America” tax credit.
“President Trump talks and talks – but he has failed to deliver results for American workers,” said an outline of the plan from the Biden-Harris campaign. “That ends under the Biden-Harris administration.”
The offshoring penalty would include a 10% surtax on top of a 28% corporate tax rate. The plan specifically notes that it would apply to call centers or other services that American companies place in other countries to serve the American market, when those jobs could be in the U.S.
Biden gives the thumbs up as he arrives to pose for photographs with union leaders outside the AFL-CIO headquarters in Harrisburg, Pa., Sept. 7, 2020. (AP Photo/Carolyn Kaster)
The other major component of the plan is a 10% advanceable tax credit for American firms that invest in closing facilities or restore ones that previously closed, bring back production, call center, or other jobs from other countries to the U.S., or expand U.S. production. It would also reward American companies that increase their manufacturing payroll.
Biden accuses Trump of creating loopholes in his 2017 tax plan by not taxing the first 10% of the profits earned by companies that had manufacturing and service jobs abroad. In contrast, his plan proposes doubling Trump’s offshoring tax rate and applying it to all income.
The former vice president’s proposed executive orders, which he says he would sign during his first week in office, are focused on having the federal government buy American and use American materials for infrastructure projects. He also promises to bolster American supply chains by expanding the list of materials that must use American components.
The initiative to “Buy American” will also include the creation of a new government office to oversee it. The “Made in America” office would be part of the White House Office of Management and Budget.
Biden is expected to further discuss the plan during a campaign speech in Warren, Mich. Wednesday afternoon.