Democratic presidential candidate Hillary Clinton unveiled a plan Friday that would discourage American companies from outsourcing jobs and operations to other countries. In a speech at Detroit Manufacturing Systems, an automotive supplier, Clinton proposed rescinding tax benefits for companies that move jobs overseas, Bloomberg reported.

The plan comes as Clinton and her Democratic rival Vermont Sen. Bernie Sanders compete in states such as Michigan, where many voters work in manufacturing jobs. The program, if approved, would apply to tax credits in several previous years.

Currently, some companies receive tax benefits for job-creating programs in the United States while also exporting other roles overseas. Clinton’s proposal would be a first for the federal government although some states including New York, Indiana and Washington have discussed similar ideas. Those state-level proposals have been aimed at companies that took advantage of tax incentives and then did not meet the state expectations or left the state, Bloomberg said.



The Clinton campaign said revenue from the “clawback” of tax incentives would be used to encourage companies to invest in the United States, the Washington Post reported. Clinton’s plan includes an exit tax on companies that invert to seek lower taxes and would discourage companies from moving profits abroad to avoid paying U.S. taxes. Ahead of the former secretary of state’s speech, aides described it as a “new bargain for a new economy” and said it was aimed at helping American workers.

Her speech is particularly important as she competes in the upcoming primaries because Sanders has criticized her for her support of trade deals, including the North American Free Trade Agreement, which he said eliminated jobs in the U.S. as corporations moved jobs to countries with lower wages. Most recent polls in Michigan have Clinton leading Sanders by about 20 points, but he is hoping to catch up. Earlier this week, Sanders’ campaign sent out an email with the subject line “Hillary Clinton: Outsourcer-in-Chief” emphasizing Clinton’s support for trade deals.



Jobs have been a big topic for both Democrats and Republicans this election cycle, with Republican front-runner Donald Trump frequently saying he would be the best person to bring American jobs back from overseas. He has not released a specific jobs plan, but has said he will punish U.S. companies that take jobs abroad and will reform trade with China to keep jobs and manufacturing in the United States.

His ideas to reform trade with China include declaring it a currency manipulator, stopping intellectual property violations, ending China’s illegal export subsidies and decreasing the U.S. corporate tax rate to 15 percent to encourage firms to stay in the U.S. However, trade experts have said it would likely be more difficult to bring U.S. jobs back than Trump makes it seem.

Clinton has frequently said her campaign is based on increasing wages and making life better for the middle class. She and Sanders will be in Flint, Michigan, Sunday for a debate ahead of Tuesday's primary.