"If your big corporate strategy is to boost your shareholders' profits, your CEO's bonuses by moving jobs out, well, we're going to make sure you not only pay full U.S. taxes on those profits, but we're going to guarantee, we're going to add a 10% offshoring surtax to your bill," Biden said.
The Biden campaign unveiled a plan to help American workers on Wednesday, promising a series of executive actions and blaming Trump for a manufacturing recession.
"Under Donald Trump, Michigan lost auto jobs even before COVID," Biden said, adding that he would be the most union-friendly president in history.
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.
The offshore 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.
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 offshore tax rate and applying it to all income.
Fox News' Ronn Blitzer contributed to this report.