The high points as reported by Bloomberg
“[Biden] called for a 10% tax penalty on U.S. companies that move operations overseas and a 10% tax credit for companies that create jobs in the U.S.
…Biden also promised to reverse Trump administration policies that allow offshoring to take place and to take executive action during his first week in office to direct the federal government to buy American goods and support American supply chains in their procurement processes.
…Biden’s proposal to target offshore profits adds to a previously announced plan to require corporations to pay a minimum 15% tax on their domestic profits. The combination would greatly inhibit companies’ ability to shift income and tax breaks between countries to avoid paying levies in the U.S. and abroad.
…Biden proposed a 28% corporate tax rate plus a 10% penalty surtax on the profits from any production by a U.S. company overseas for sale on American soil, making the overall tax rate on those profits 30.8%. The penalty will also apply to call centers and services that a U.S. company locates overseas but that serve the U.S.
Biden is also proposing a 10% “Made in America” tax credit for companies that create jobs for American workers and accelerate the U.S. economic recovery. It will be available for revitalizing closed or nearly closed facilities, retooling or expanding facilities, and bringing production or service jobs back to the U.S. and creating U.S. jobs. It will also apply when a company is increasing manufacturing wages above the pre-Covid baseline for jobs paying up to $100,000.
…Biden’s plan would also end what his campaign describes as three “Trump offshoring loopholes” that were part of the 2017 tax law: allowing U.S. companies that locate production or call centers overseas to pay no taxes on the first 10% of profit, permitting companies to combine strategies to move profits overseas and park profits in tax havens to avoid paying all U.S. taxes, and applying taxes at just half the rate a U.S. company would pay for activities in the U.S.
Biden would double the Trump tax rate to a minimum tax of 21% on all foreign earnings of U.S. companies overseas. He would also end the use of tax-haven strategies by applying the minimum tax to each foreign country separately.
Biden’s executive actions would use The Defense Production Act and the Federal Property and Administrative Services Act of 1949 to enforce Buy American rules. Among other measures, he would also crack down on companies that label products as Made in America if they’re coming from China or elsewhere and create a Made in America office within the White House Office of Management and Budget to ensure that the government complies with Buy American rules.”