A Project of The Annenberg Public Policy Center

A Little Ditty ‘Bout Taxes and Trade

The Obama-Biden campaign has released a radio ad in Indiana featuring favorite native son John Mellencamp. In the ad, Mellencamp says, “John McCain will keep giving tax breaks to companies shipping American jobs overseas.”
Mellencamp is referring to an aspect of the tax code that allows companies to skirt paying U.S. corporate taxes on profits they make overseas and leave overseas. But economists have consistently said this tax provision isn’t a major reason jobs are being sent abroad.