Democratic presidential front-runner Hillary Clinton on Friday will call for a “clawback” of tax and other benefits for companies that outsource jobs abroad, a campaign aide said.
Clinton will offer this proposal during a speech in Detroit about jobs.
{mosads}Under the proposal, the benefits that would be rescinded for companies that outsource would include the research and development tax credit and the domestic production deduction. The clawback would apply for several previous years and in cases where companies received relief for facilities and jobs that they subsequently moved abroad, the aide said.
While the clawback is a new approach at the federal level, several states now have or have considered proposals that would rescind incentives for companies that move production out of their jurisdictions, according to the aide.
The proposal is part of a series of ideas Clinton has put forth “to confront corporations that walk out on America,” the aide said.
Clinton has already announced proposals aimed at curbing “corporate inversions,” or transactions in which a U.S. company merges with a foreign company and then reincorporates the merged business in a foreign country to lower its tax burden.
The clawback is also designed to help advance the “new bargain” that Clinton will call for in her speech, the aide said.
The “new bargain” has three principles: that corporations do right by their communities and country, that employers treat their employees as assets and that government stops rewarding special interests, according to the aide.