Heeyyy, How About Those Dodgers!
Tax Dodgers that is.
Obama is trying to fulfill a campaign promise to crack down on those sleazebuckets who hide their money in other countries. This crackdown would be accomplished with new tax laws, new reporting requirements and hundreds of new IRS agents
Obama said the way for America to stay competitive is “not to reward our companies for moving jobs off our shores or transferring profits to overseas tax havens.”
You’d expect Republicans to be having a tantrum about this proposal, but even a lot of Democrats are unenthusiastic. Senator Max Baucus (D-Montana) said: “Further study is needed to assess the impact of this plan on U.S. businesses.”
I don’t agree with the Far Left mantra that “there’s no difference between the two parties.” But this is the kind of bullshit that reinforces that belief.
Obama says the current tax law rewards multinational corporations at the expense of companies that only do business in America: “It's a tax code that says you should pay lower taxes if you create a job in Bangalore, India, than if you create one in Buffalo, New York.”
He also wants to eliminate the current “check the box” rule, which goes back to Clinton’s presidency. This rule makes it easy for companies to transfer cash from one country to another — i.e. from the higher-tax country where they’re actually doing business, to a tax haven in Bermuda or the Cayman Islands.
Obama’s tax proposal will also make permanent the existing tax credit that companies are getting when they spend money on domestic research and development.
The U.S. Chamber of Commerce, the Business Roundtable and some of America’s largest corporations are trying to derail this tax reform. What’d you expect?
cross-posted at Bring It On!
Labels: Obama tax dodgers