Kerry's plan to create 10 million jobs -- a plan that Republicans branded yesterday as unworkable and ineffectual -- depends on an array of tax cuts and changes in the tax code. The centerpiece is an end to a tax break enacted in the early 1960s, known as deferral, that allows US companies to delay paying taxes on foreign income so long as those profits are reinvested in those overseas operations.
Kerry said this change would strip away an incentive for companies to move jobs abroad and generate about $12 billion annually, which would be used to pay for a 5 percent reduction in the corporate tax rate, from 35 percent to 33.25 percent. Citing IRS studies, campaign advisers contended that 99 percent of US companies would owe less in taxes after these twin changes. The plan also includes a one-year "tax holiday" for corporations that invest foreign revenues into their US operations, proposing to tax those profits at a special 10 percent rate.
http://www.johnkerry.com/pressroom/news/news_2004_0327.html_________________________________________
A Plan To Create Good-Paying Jobs At HomeEnforce Trade Agreements and Close Outsourcing Loopholes to Revitalize Manufacturing and Create Jobs at Home Strongly Enforce Existing Free Trade Agreements, Pry Open Markets Abroad, and End China's Illegal Currency Manipulation. As president, John Kerry will step up enforcement of existing agreements and laws to ensure that our trading partners play by the rules. Specifically, John Kerry will immediately investigate China's workers' rights abuses, increase funding for workers' rights and anti-abusive child labor efforts, increase resources for trade enforcement and action at the World Trade Organization and engage in more forceful efforts to stop illegal currency manipulation by China and other countries. In addition, John Kerry will ensure a level playing field for trade by only signing new agreements that include enforceable labor rights and environmental standards.
Close Loopholes In International Tax Law That Encourage Outsourcing. Today's tax law provides big breaks for companies that send American jobs overseas. Current "deferral" policies allow American companies to avoid paying American taxes on the income earned by their foreign subsidiaries and encourage them to keep their profits parked overseas, not reinvested in America. As president, John Kerry will end deferral that encourages outsourcing and will shut down other loopholes to make the tax code work for the American worker, not provide tax breaks for companies that ship jobs overseas.
One-Time Tax Holiday For Companies To Re-Invest Their Foreign Profits In America. At the end of 2002, American companies were keeping more than $639 billion in profits abroad. John Kerry and John Edwards have a plan to bring those profits back home. For one year, they will provide companies with a special low tax rate of 10 percent on any foreign profits they re-invest in the United States for companies with a domestic re-investment plan. (This rate will apply only to repatriations in excess of average repatriations over a base period.) Combined with their plan to end future incentives for keeping foreign profits abroad, this plan will help jumpstart job growth and strengthen the American economy.
Establish Manufacturing Business Investment Corporations (MANBIC). The Kerry-Edwards MANBIC initiative is modeled on the Small Business Investment Company (SBIC), a program John Kerry has strongly supported in the past and will champion as president. SBIC provides venture capital and start-up financing to small businesses, many of which have grown into large corporations employing millions of Americans. Companies like Intel, America Online, Apple Computers, Staples, Federal Express, and Sun Microsystems all got their start with help from SBIC. MANBIC will create added incentives for venture-capital investment in medium-sized manufacturing firms, which are crucial in developing and sustaining new products, new production methods, and new markets.
Make America More Competitive
Create a New Jobs Tax Credit. Research has demonstrated that new jobs tax credits increase employment. The Kerry-Edwards New Jobs Tax Credit will cover an employer's share of payroll taxes for net new jobs created in manufacturing, other businesses affected by outsourcing, and small business. The credit will be available in 2005 and 2006.
Lower Corporate Tax Rates by 5 Percent. The Kerry-Edwards plan to close tax loopholes and end deferral will not increase the deficit by one dime - in fact, it will save an average of $12 billion a year. These profits will be used to:
Lower the corporate tax rate from 35 percent to 33.25 - a 5 percent reduction. Cut taxes for over 99 percent of tax-paying companies. The Kerry-Edwards international tax reform will increase hiring and investment in America by American companies. An analysis of IRS data shows that more than 99 percent of corporations paying corporate income taxes would see their taxes reduced under the Kerry-Edwards proposal.
Save Workers Up To $1,000 On Health Care Premiums. Organizations from the AFL-CIO to the NAM agree that rising health costs have impeded sustained jobs recovery, especially in the manufacturing sector. Total health care premiums have risen 41 percent under George Bush, making it harder for employers to hire new workers.
John Kerry and John Edwards have a plan to make health care more affordable for America's families and for America's employers. Their plan includes tax credits to help small businesses pay for health insurance, and a swap in which the government will assume most of the cost of catastrophic healthcare (care costing above $50,000) if companies agree to extend high-quality health care to their employees. The Kerry-Edwards plan will cut premiums by up to $1,000.
Cut Energy Costs and Move America Towards Energy Independence. John Kerry and John Edwards support a comprehensive agenda to advance the use of renewable energy sources and new energy technologies, and promote more energy-efficient cars and buildings - a forward-thinking plan that will reduce pressure on businesses over the long run.
Support Jobs In America Through "Buy American" Guidelines. John Kerry and John Edwards believe that whenever possible, federal contracts should be performed by American workers. John Kerry and John Edwards will support stronger "Buy American" guidelines for defense and homeland security, which will help retain and strengthen domestic manufacturing capabilities in strategic manufacturing industries.
Invest In the Jobs of TomorrowEnhance Training. George Bush has proposed more than $1 billion in cuts to worker training over the last three years. John Kerry and John Edwards will fight to expand training and lifelong learning by expanding training as part of the Trade Adjustment Assistance program, supporting regional skills alliances, and protecting training conducted at community colleges.
Create Universal Access To Four Years Of College Through the College Opportunity Tax Credit. As president, John Kerry will propose a tax credit on up to $4,000 of tuition for four years of college, making college accessible for all Americans. This is a crucial step towards training the workforce of the future to secure and create the higher-paying jobs of tomorrow.
Double Funding For the Manufacturing Extension Partnership (MEP). America's 350,000 small manufacturers account for over half the total value of U.S. industrial production. They employ 1.1 million people in high-skill, high-wage jobs, with production employees earning 50 percent more than retail employees. In 2003, the MEP helped small manufacturers create or retain 35,000 jobs and $2.8 billion in sales. Yet George Bush has proposed slashing 90 percent of the MEP budget. As president, John Kerry will double the funding for the Manufacturing Extension Partnership based on its year 2000 level, speeding adoption of new technology by small and medium-sized manufacturers.
Improve America's K-12 Math And Science Education. America will only prosper in the global economy if we give every child a world-class education. Education in math and science is especially crucial in increasing America's national security and high-tech competitiveness. But today, more than half of America's high school students are being instructed in the physical sciences by teachers who don't have a college major in the subject they're teaching. In low-income urban schools, the situation is even worse. As president, John Kerry will give states and school districts the resources they need to help schools meet high standards for our children and retain high-quality teachers. He will also provide current teachers with the professional development they need to excel, and extend a new bargain to America's teachers that offers more but asks for more in return.
Establish a National Education Trust Fund. As president, John Kerry will establish a National Education Trust Fund of approximately $200 billion over ten years to fully fund No Child Left Behind, get schools on track to meet the Federal government's commitment to special education, provide tax credit bonds for school construction, and invest in everything from college preparedness to reducing class size and dropout rates.
Move Towards Universal Broadband Access. During the Bush administration, the United States has fallen from 4th to 10th in terms of adoption of broadband. Not only that, other countries such as South Korea and Japan are now deploying networks that are 20-50 times faster than what is available in the United States. At the same time, America has lost more than 1 million high-tech jobs. John Kerry and John Edwards will fight for a national broadband policy that will speed the deployment of this essential infrastructure, including a broadband deployment tax credit. The widespread adoption of broadband could add $500 billion to the U.S. economy, generate more than 1.2 million jobs, and transform the way we learn, work, and deliver digital opportunity throughout the country.
Restore Funding For the Advanced Technology Program (ATP). The Bush administration has proposed eliminating the ATP, the only federal program designed to promote civilian technological innovation whether or not it is linked to government missions such as defense. As president, John Kerry will reform the ATP so that it supports the growth of high-technology "clusters" that spring up around research institutions and funds the university-industry consortia that benefit broad sectors of our economy.
Expand Trade Adjustment Assistance Programs. We need to expand the Trade Adjustment Assistance (TAA) programs to provide immediate relief for manufacturers, workers, and communities hurt by manufacturing imports, and integrate these programs with other workforce training programs. John Kerry supports expanding TAA to service sector workers who lose their jobs due to outsourcing.
Develop 21st Century Manufacturing Technologies At The Defense Advanced Research Projects Agency (DARPA). In the past, investments in defense research have helped America's armed forces achieve their current superiority. Investments resulted in innovations like stealth technology, precision-guided munitions, and night-vision goggles.
This year, the Bush administration has proposed cutting the long-term portion of the defense research and development budget by 15 percent. John Kerry and John Edwards will increase investment in long-term, high-risk defense research through agencies like DARPA and the Office of Naval Research. Some of the increase will be targeted to advanced manufacturing technologies, such as flexible manufacturing, that can provide custom products in low volumes at competitive costs. This will benefit U.S. manufacturing as a whole, not just Defense Department suppliers.
http://www.johnkerry.com/issues/economy/jobs.html
Printer-friendly format
Email this thread to a friend
Bookmark this thread
(1000+ posts)
Send PM |
Profile |
Ignore
