Biden Unveils Massive Tax Hikes He Claims Will Keep Jobs in U.S.

Ahead of a campaign stop in the battleground state of Michigan on Wednesday, Democratic presidential nominee Joe Biden unveiled his proposal that he claimed, without evidence, would create jobs and punish companies who send them to other countries.

Biden’s plan calls for a “Made in America” tax that would impose a 30 percent tax rate for companies that send jobs away and then sell manufactured items or services back to the United States.

That proposal, however, might not have much of an effect on corporate America’s profits or American jobs. Much of the goods produced by U.S. corporations abroad are sold globally rather than into the U.S. Similarly, many of the goods sold into the U.S. by domestic companies are manufactured by foreign companies. Apple’s iPhone is built in China by  Taiwanese multinational electronics contract manufacturer Foxconn—so Biden’s surtax would likely not apply.

Details of exactly what would be taxed were not forthcoming from the campaign.

The proposal also would provide a 10 percent tax incentive for businesses that revitalize facilities to improve competition and employment in the manufacturing industry. The credit would also go to companies that expand U.S. facilities to increase employment or improve payroll. That is likely to make investments in domestic manufacturing more attractive, creating new jobs and preserving existing work.

Biden also promised a 21 percent minimum tax on foreign revenues earned by U.S. companies, a provision intended to keep businesses from shielding their profits in tax havens overseas. Currently, foreign profits are subject to a 10.5 percent minimum tax. This provision might make U.S. companies less competitive around the world but would likely increase the incentive for multinationals to invest in the U.S.

Biden also promised to step up enforcement of federal laws requiring government contractors to hire Americans and use American made products. The Trump administration has already made big steps in this direction but many of the president’s supporters agree that more can and should be done.

The plan was unveiled on the same day Biden visited Macomb County in Michigan, a state with a heavy manufacturing industry.

–UPI contributed to this report.