Obama To Jack Up Taxes On American Companies That Do Business Overseas
Obama says he’s going to “save” the government $210 billion over the next decade as if the money were the government’s in the first place and they were “spending” it by allowing these businesses to keep it. But what I’m wondering is, if Obama really wants to keep American businesses in America…why doesn’t he just cut back on the taxes and regulations that drive American businesses out of America?
WASHINGTON (Reuters) – President Barack Obama on Monday will propose changing provisions in the tax code that he says encourage U.S. companies to move jobs overseas, as part of a broader package aimed at saving $210 billion over 10 years.
U.S. officials said that in an announcement planned for 11:05 a.m. EDT, Obama will seek to follow through on a campaign promise to change the tax treatment of American firms with overseas operations.
That portion of his plan — opposed by such firms as Pfizer Inc and Oracle Corp — would raise more than $100 billion in revenue over the next decade. …
Currently, U.S. firms are allowed to defer paying taxes on profits earned overseas if they plow those profits back into their foreign subsidiaries.
Critics say those rules encourage businesses to bolster their foreign operations instead of creating jobs at home.
But an array of firms signed onto a letter to congressional leaders in March opposing changes to the so-called deferral provision, saying they would make U.S. businesses less competitive.
I don’t think there’s any doubt that this move would make American businesses less competitive abroad. America’s second-highest-in-the-world corporate tax rate already puts American businesses at a competitive disadvantage, now we’re going to exacerbate that problem.
If Obama really wanted to keep American businesses in America, and create more jobs here at home, why not give these companies a tax break? Why not give them incentive to keep their operations here in America by not taxing them to death?
Unfortunately that’s not Obama’s real goal here. His real goal is more revenue to staunch the bleeding in the massive budget deficits that he himself has created. Not single-handedly, mind you. Obama came into office with about a $400 billion deficit. But he has since inflated that to $1.75 trillion, and is desperate for revenue.
Thus, American businesses are in Obama’s cross hairs.
I have never bought into the argument that Obama wasn’t an American citizen, but this might put some doubt into my mine.
http://thearizonasentinel.com/2009/05/02/obama-receives-foreign-student-tuition-aid/
Making mistakes on returns or even omitting info is not the same as intentional avoidance through tax havens.
The market seems to approve of the news. It’s up again today nearly 200 points.
Well isn’t that dandy. He’ll tax US corporations that do business overseas, but foreign corporations will be able to come here and do business in the states.
Way to go Barry. Let’s drive all US owned businesses out of business.
Then we can really worship at the feet of our foreign overlords. (hyperbole.)
should warren buffet be put in jail? what about bill gates?
Obama loves to villify businesses and individuals that make money. And he loves to spend money. This change to tax law he wants to make looks like a win-win for him. The rest of us will lose though.
Anything Obama says about complicated tax code or fairness is just bullcrap. Obama’s ideal American is one that is 100% dependent on welfare – and those people don’t pay income tax or capital gains tax, etc. The rest of us who dare work for ourselves or think for ourselves are going to have to pay pay pay for Obama’s vision of what America should be.
Don’t pay taxes. It’s the most patriotic, Christian thing one can do right now.
Avoiding taxation is treasonous? So I’m guessing Geithner and Daschle will be imprisoned too?
he will go after overseas individual earnings very soon as well… this will hurt our military folks more than anyone, but i am guessing we wont hear that side of the story expressed as loudly as it should be.
Mark’s story was from April 1st.
—–
Obama is just going to try and close tax havens. 83 of the 100 largest American companies, some getting bailout funds, have “overseas” operations for the sole purpose of avoiding taxation. Rich people do it too.
That’s treasonous. He should not only close the loopholes, he should imprison the people using them.
Things might get nasty down the line.
If he goes after the corporations, then he needs to go after the people like Soros and the Kennedys who have most of thier wealth off-shore. After all… fair is fair and we MUST be fair, shouldn’t we?? Oh my, silly me… I guess it’s more fair for some than others.
Obama is a flaming crock of steaming sh*t!
So he’s doing this at the same time as carving up the American auto industry and handing it to foreign ownership?
His incompetence is tantamount to suiciding American international businesses. Or maybe murdering.