Following Trump, Biden Also Proposes Taxing US Companies Overseas... Job Pressure Expected After Election

Biden Aims to Curb Offshoring Through Corporate Tax
Tax Credits for Reshoring Companies
Trump Threatens Tariff Bombardment on Offshoring Firms
Midwest Swing States Rise, Manufacturing Job Pledges Follow

[Asia Economy Reporter Naju-seok] Joe Biden, the Democratic presidential candidate in the United States, announced a tax pledge on the 9th (local time) to impose a 30.8% corporate tax on companies that relocate jobs overseas, thereby penalizing them.

U.S. President Donald Trump also promised to impose hefty tariffs, so regardless of who wins, pressure on U.S. companies with overseas production bases to return is expected to intensify.

Democratic presidential candidate Joe Biden is giving a speech in Warren, Michigan, on the 9th (local time). [Image source=Reuters Yonhap News]

On the 9th (local time), Biden unveiled the "Made in America" tax policy aimed at curbing offshore relocation and encouraging reshoring of U.S. companies during a campaign rally in Michigan, once the heart of American manufacturing but now a declining Rust Belt state.

According to this tax reform plan, if Biden becomes president, a 30.8% tax will be imposed on profits generated from products made overseas by U.S. companies and sold in the U.S. This includes the base corporate tax of 28% plus an additional 2.8 percentage points for offshoring.

This is not different from President Trump's pledge. During a rally in Pennsylvania on the 20th of last month, Trump declared, "(If re-elected) companies that bring jobs back to America will receive tax benefits, but those that do not will face tariffs." However, he did not disclose specific tax support measures or tariff imposition plans.

Biden explained this tax pledge by saying, "It is not to punish American companies but to offer a better way." He made it clear that the intention is to invest in America and American communities. He promised, "If we take office, we will impose taxes on offshoring and increase reshoring." Biden criticized Trump's 2017 tax cut policy, saying, "Trump's tax policy was upside down and backward," and "He did not keep his 2016 campaign promises." The tax cut plan at that time lowered the tax burden on profits earned overseas by American companies, reducing the incentive for U.S. companies producing abroad to return to the U.S.

On the other hand, Biden promised a 10% tax credit benefit for companies that reshore. Specifically, he mentioned companies that reactivate closed facilities, renovate facilities to improve competitiveness and employment, and bring job-creating production facilities back to the U.S.

In addition, Biden pledged to issue an executive order immediately after taking office to strengthen the "Buy America" rule, prioritizing the use of American-made products in public infrastructure projects within a week.

As the Midwest industrial region emerges as a battleground in this year's U.S. presidential election, both President Trump and Biden are aggressively promoting policies such as reshoring. Michigan, along with Wisconsin and Pennsylvania, is considered one of the three major swing states.

This content was produced with the assistance of AI translation services.