White House Proposes Tax to Discourage Factory Outsourcing, Encourage Insourcing

A White House proposal that would require U.S. multinational corporations to pay a minimum tax on their overseas profits is designed to make the corporate system fairer and discourage manufacturers from moving to lower-tax jurisdictions, senior White House officials said Jan. 25.

The new tax, proposed in President Obama’s State of the Union address Jan. 24, would be designed to prevent other countries from attracting American businesses through low tax rates and the savings would be invested in cutting taxes in the United States, according to a fact sheet released by the White House.

National Economic Council Director Gene Sperling ...