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No evidence for Biden claim that Trump tax cuts encouraged corporations to flee US, proponents say

Added 04-18-21 12:23:01pm EST - “While President Joe Biden and his administration claim the 2017 Trump tax cuts need to be overhauled in part because the law incentivizes offshoring, proponents of the GOP tax cuts say there is no tangible evidence to support that…” - Washingtonexaminer.com

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Posted By TheNewsCommenter: From Washingtonexaminer.com: “No evidence for Biden claim that Trump tax cuts encouraged corporations to flee US, proponents say”. Below is an excerpt from the article.

While President Joe Biden and his administration claim the 2017 Trump tax cuts need to be overhauled in part because the law incentivizes offshoring, proponents of the GOP tax cuts say there is no tangible evidence to support that assertion.

In Biden’s newly proposed "Made in America" tax plan, which aims to alter the corporate tax structure in order to pay for his $2 trillion infrastructure package, the administration asserts that the Tax Cuts and Jobs Act "created new offshoring incentives." The president has also hinted that the tax bill moved jobs overseas while on the campaign trail.

"[Former President Donald Trump’s] 2017 tax bill slashed taxes on companies that sent production and jobs overseas," Biden said during a September speech. "Those corporations then make huge profits by shipping these foreign-made products back to the United States to sell to American consumers."

Proponents of the GOP tax cuts say the legislation actually encouraged corporations not to offshore — that is, moving production and jobs overseas — and altogether ended corporate "inversions." Corporate inversions are when a U.S. multinational company merges with a smaller company in a low-tax country to establish residency there and reap the benefits of the lower tax rates without significantly changing its operations in the U.S.

William McBride, vice president of federal tax and economic policy with the Tax Foundation, a nonpartisan think tank that generally supports lower tax rates, said that his organization spent time trying to find evidence that the Trump tax law contributed to offshoring but came up empty-handed.

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