US President Barack Obama has said that he will end tax breaks for the firms that create jobs abroad. He also accused Republicans of advocating faulty economic policies during a mid-term campaign.

"I think if we're going to give tax breaks to companies, they should go to companies that create jobs in America - not that create jobs overseas," he said

He is also pushing for a $350 billion plan to give a boost to the economic growth including $200 billion in tax cuts for firms to purchase new equipment and write off 100 percent of new investments till the end of 2011.

He has spoke about a $50 billion proposal for investment in infrastructure and $100 billion for extending tax credits to businesses for research and development. There are strong indications that outsourcing will become a hot issue in the November elections.

"One of the keys to job creation is to encourage companies to invest more in the United States. But for years, our tax code has actually given billions of dollars in tax breaks that encourage companies to create jobs and profits in other countries,” he added.

He expressed that he wants to change that situation and incentives investment in the US by giving generous credits to firms that carry out research and development in the country.