Kerry Tax Plans Aim To Punish Firms Sending Jobs Abroad

by Leroy Baker, Tax News.com, New York

23 August 2004

The Democratic Presidential candidate Senator John Kerry outlined his corporate tax plans on the campaign trail Friday, which offer tax incentives to encourage firms to create domestic jobs.

"Right now, we've got a choice," Kerry said in a statement. "We can keep on subsidizing companies who send jobs overseas, or we can reward companies who keep them here in America, where they belong."

Under Democratic proposals, Kerry intends to end tax breaks for firms sending jobs overseas, whilst companies creating domestic jobs in 2005 and 2006 will receive a tax credit.

With the money saved from the tax breaks and other measures, Kerry has pledged to reduce the corporate tax rate by 5%, thus further encouraging them to keep operations at home.

Kerry has also sketched out a six-point plan to strengthen trade enforcement, including a 120 day review of trade agreements.

“We can keep on letting other countries break the rules, or we can lay down the law and tell them: if you don’t play by the rules, you’ll pay for it, end of story.” he stated.

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