Democratic Presidential candidate Hillary Clinton yesterday unveiled an Insourcing Plan that includes a number of tax incentives designed to spur job creation:
- Increase the R&D credit by 50% (from 20% to 30%) and increase the Alternative Simplified Credit by 67% (from 12% to 20%).
- Create a 40% Basic Research Credit.
- Create a 10% Start Up Research Jobs Credit.
- Create a new $5 billion Insourcing Markets Tax Credit.
- Close loopholes that encourage companies to ship jobs overseas:
- Eliminate deferral provision that allows U.S. companies to defer paying U.S. taxes on income earned by their foreign subsidiaries until that income is repatriated to the U.S.
- Close tax loopholes to ensure that companies cannot continue receiving tax benefits for locating abroad. She will disallow companies from engaging in transfer-pricing arrangements where companies avoid taxes by shifting income or assets to low-tax jurisdictions. She will eliminate incentives in the tax code (like the ability to “cross-credit”) that encourage U.S. companies to shift operations or at least profits to low-tax jurisdictions. And she will eliminate the unfair advantage that foreign insurers located in tax havens have against U.S. insurers competing for U.S. business.
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