Clinton to Take Aim at Corporate Inversions with “Exit Tax” Plan

Clinton said in a statement at the time it would “leave US taxpayers holding the bag”. They spoke on condition of anonymity ahead of the official campaign announcement.

Clinton’s campaign cited the recent closing of electric manufacturer Sparton Corp.’s plant in Lawrenceville as an example of a community that could potentially apply for credits through her tax proposal.

Clinton announced a $275 billion federal infrastructure investment plan last week, and has called for significant tax credits for middle class families.

As Fortune reports, Clinton “has been criticized throughout her campaign, particularly by rival candidate Bernie Sanders, for having close ties to Wall Street”. She would expand President Obama’s National Network for Manufacturing Innovation program, which supports regional hubs bringing workers, businesses, universities and community colleges together to develop world-leading technologies and production that anchor jobs.

“Secretary Clinton is right to fight back against Republicans trying to sneak Wall Street giveaways into the must-pass government funding bill”, Warren, a former Harvard Law School professor and long-time consumer advocate, noted on social media.

FILE – In this Friday, Dec. 4, 2015, file photo, Democratic presidential candidate Hillary Clinton speaks during a town hall meeting in Fort Dodge, Iowa.

Clinton would levy a new “exit tax” on companies entering into these deals. The U.S. corporate tax rate now stands at 35%, although many firms pay a lower effective rate. Her campaign says the “Manufacturing Renaissance Tax Credit” would allow tax relief for localities facing layoffs or the loss of a manufacturing plant. The Obama administration has proposed raising that threshold to more than 50 percent.

Even a menu is hard to come by, though a lunch meeting in 2013 – the year after Clinton left her post as the nation’s top diplomat – is known to have featured grilled chicken, pasta jambalaya and salad.

The new tax would be part of a broader effort to target what analysts say is roughly $2 trillion in profits U.S. companies are hoarding overseas to reduce their taxes. In a guest column a year ago for cleveland.com and The Plain Dealer, Roman wrote that one of the partnership’s development affiliates had leveraged more than $100 million worth of incentives into 30 projects.

Sen. Elizabeth Warren (D-Mass.), a tribune of the progressive left, has previously chided Hillary Clinton for siding with the financial industry in a landmark bankruptcy reform vote.