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Kerry Details Economic Plans - 2004-03-26


Democratic presidential candidate John Kerry is unveiling his economic plans Friday, while President Bush rallies supporters in the southwest.

Senator Kerry's plan is aimed at keeping U.S. jobs at home. His proposals include a change in corporate tax laws, ending what's called the "deferral" tax break, which allows U.S. companies not to pay taxes on foreign income until it is returned to the United States. Mr. Kerry would tax foreign profits like domestic earnings.

As an incentive to rally big businesses to accept his plan, he would reduce the corporate tax rate by five percent, using the estimated $12 billion in revenue earned by the new overseas tax to make up the difference.

Mr. Kerry says the current tax code rewards companies for transferring jobs overseas, adding "that makes no sense."

The proposal is part of a larger job creation package Mr. Kerry plans to detail in the coming weeks. He unveiled the first part Friday at Wayne State University in Michigan, considered a battleground state in the general election.

President Bush discussed his policies with voters in the southwestern states of New Mexico and Arizona. Mr. Bush lost New Mexico by 350 votes in the 2000 election. Arizona is considered a Republican stronghold.

A poll released Friday, in the key battleground state of Ohio shows Mr. Kerry and the President in a statistical tie in that state. The Institute for Policy Research reports Mr. Kerry has the support of 46 percent of Ohio voters, while Mr. Bush is supported by 44 percent.

Independent candidate Ralph Nader has a five percent rating, and four percent of voters are undecided.

The poll was conducted in the central U.S. state between March 10 and March 22.