Transcript for State of the Union: Obama on Manufacturing
On the day I took office our auto industry it was on the verge of collapse. Some even said we should let it -- With a million jobs at stake I refused to let that happen. In exchange for help we... See More
On the day I took office our auto industry it was on the verge of collapse. Some even said we should let it -- With a million jobs at stake I refused to let that happen. In exchange for help we demanded responsibility. Real workers and auto makers to settle their differences. We got the industry to retool and restructure. Today General Motors is back on top as the world's number one auto maker. Chrysler has grown faster in the US than any major car company. Ford is investing billions in US plants and factories. And together the entire industry added nearly a 160000. Jobs. We -- on American workers we bet on American ingenuity. And tonight. The American auto industry is back. What's happening in Detroit. Can happen in other industries. You're gonna happen in Cleveland and Pittsburgh. -- -- We can't bring every job back -- left are short. But right now is getting more expensive to do business in places like China. Meanwhile America is more productive. A few weeks ago the CEO -- master lock. Told me that it now makes business sense for him to bring jobs back home. Today for the first time in fifteen years. Master locks unionized plant in Milwaukee is running at polka path that. We have a huge opportunity. At this mall. To bring manufacturing back. -- we have to season. Tonight my message to business leaders is simple. Ask yourself what you can do to bring jobs back to your country. And your country will do everything we can help you succeed. We -- start with our tax -- Right now companies get tax breaks for moving jobs and profits overseas. Meanwhile companies that choose to stay in America get hit with a one of the highest tax rates in the world. It makes no sense. And everyone knows. So let's change it. First if you're a business that wants to outsource jobs. You shouldn't get a tax deduction for doing it. That money should be used to cover moving expenses for governors like master lock. The decide to bring jobs home. No American company. Should be able to avoid paying its fair share of taxes. By moving jobs and profits overseas. I'm not on every multinational company should have to pay a basic. Minimum tax and every -- Should go towards lowering taxes. For companies that choose to stay here and higher here in America. -- -- If you're an American manufacturer. -- you get a bigger tax cut. If you're a high tech manufacturing. We -- double the tax deduction you get for making your products here. If you wanna relocate in a community that was hit hard won a factory left town usually get help financing a new plant. Equipment. -- training for new workers. So my message. My message is simple. It is time to stop rewarding businesses that ship jobs overseas. And start rewarding companies that create jobs right here in America send navy.
This transcript has been automatically generated and may not be 100% accurate.