As a presidential candidate, Joe Biden promised to change the tax code to penalize "offshoring," or having U.S. companies set up facilities overseas to avoid paying taxes.

After taking office, Biden proposed several tax changes that could affect offshoring. 

One would have changed the taxation of global intangible low-taxed income, or GILTI — the income earned by foreign affiliates of U.S. companies that exceeds a 10% return on their tangible assets. Currently, a multinational corporation might be able to avoid this taxation by "blending" income earned in low tax-rate countries with income earned in high-tax rate countries, effectively sidestepping much of the tax bite.

The initial version of Biden's Build Back Better legislation, which has passed the House, would have changed how GILTI operated, increasing the effective tax rate for companies. 

In the Senate, Democrats decided that they couldn't vote for a measure that broad. The bill that managed to pass the Senate — and which is expected to pass the House and be signed by the president — included other provisions on corporate taxation, but not ones that directly targeted offshoring. 

"The offshoring penalty is not in" the bill approved by the Senate, said Garrett Watson, senior policy analyst with the Tax Foundation. "Some have tried to argue that the minimum book tax may impact foreign income. While that could be true, it's not the main aim of that tax, and it would not necessarily impact decisions about foreign investment in the same way as the penalty proposed by the president previously."

Since this is the last major legislation considered to have a chance of passing before the midterm elections, we rate this promise Stalled.