WASHINGTON, March 26 (UPI) -- Democratic presidential challenger John Kerry is calling for corporate tax code changes to stem the outsourcing of U.S. jobs.
The Massachusetts senator, who planned to unveil his proposal in Detroit Friday, seeks to capitalize on the public concern over the loss of skilled jobs to places like India and China, the Wall Street Journal reported.
Kerry wants to eliminate the tax break that lets U.S. companies defer tax payments on income earned abroad.
That break costs the U.S. Treasury about $12 billion annually, his office said.
Kerry would then use the additional revenue to cut the overall U.S. corporate tax rate from 35 percent to 33.25 percent.
He also would offer U.S. companies a one-year tax break to repatriate earnings now held overseas, which the Congressional Research Service estimates at $600 billion. During that year, repatriated earnings would be taxed at a 10 percent rate.
Congressional Republicans have proposed similar tax holidays.
