President-Elect Biden has pledged to establish a new “Made in America” office within the Office of Management and Budget. The office will coordinate interagency Buy American policy, review waivers and general compliance, and establish additional transparency rules.
To complement the strengthened Buy American orders, President-Elect Biden plans to pursue aggressive tax reforms to return key supply chains to the United States. President-Elect Biden plans to pursue the following tax policies:
- A 10% Offshoring Penalty Surtax on profits of any production by a U.S. company overseas for sales back to the U.S.
- Elimination of tax offshoring loopholes found in the 2017 Tax Cuts and Jobs Act
- A Made in America tax credit of 10% for investments that create jobs for American workers
Eligible investments could include reshoring production to the United States, revitalizing closed facilities, retooling facilities to meet advanced manufacturing capabilities for key industries, and expanding manufacturing payroll.
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