President Obama was in Milwaukee, Wisconsin today to lay out his plans to strengthen American manufacturing. After touring Master Lock—a company that has brought 100 outsourced jobs back home—the President spoke to workers at the factory:
Right now, companies get tax breaks for moving jobs and profits overseas. They’re taking deductions for the expenses of moving out of the United States. Meanwhile, companies that are doing the right thing and choosing to stay here get hit with one of the highest tax rates in the world. That doesn’t make sense, everyone knows it doesn’t make sense. Politicians of both parties have been talking about changing it for years. So my message to Congress is: don’t wait. Get it done. Do it now. As Congress thinks about tax reform principles, there are some basic things they can do.
First, if you’re a business that wants to outsource jobs, you have that right, but you shouldn’t get a tax deduction for doing it. That money should be used to cover moving expenses for companies like Master Lock that decide to bring jobs home. Give them the tax break.
Second of all, no American company should be able to avoid paying its fair share of taxes by moving jobs and profits overseas. So we’ve said from now on, every multinational company should have to pay a basic minimum tax. And every penny should go towards lowering taxes for companies that choose to stay and hire in the United States of America.
Third, if you’re an American manufacturer, you should get a bigger tax cut. If you’re a high-tech manufacturer, creating new products, new services, we should double the tax deduction you get for making products here in America. And if you want to relocate in a community like this one that’s been hit hard by factories leaving town, you should get help financing a new plant, financing new equipment, training new workers.
It is time to stop rewarding businesses that ship jobs overseas, and start rewarding companies that are creating jobs right here in the United States of America. This Congress should send me these tax reforms right now. I will sign them right away.