Obama says he will close "Loopholes" for US Multinational Corporations

Discussion in 'Current Events' started by American Horse, May 4, 2009.

  1. American Horse
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    American Horse AKA "Mustang"

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    Obama Targets Overseas Tax Dodge
    Loopholes Would Close For U.S. Firms With Foreign Operations

    We hear about tax loopholes so often as if they were some sort of dishonesty on the part of tax filers, but tax "Loopholes" come as a result of considered tax policy designed to promote the aims of the politicians who wrote the bills and passed the laws which provide for these loopholes. Most Democrats, not to mention Republicans, who are not fringe left politicians, understand the tax law better than does Obama. They will want Obama to understand for certain what he is about to do: probably cause more jobs to leave the US shores, and whole Corporations will leave, changing the headquarters to more friendly foreign locations.

    "During an event at the White House, Obama said his proposal would raise $210 billion over the next decade and make good on his campaign pledge to eliminate tax advantages for companies that ship jobs abroad…..

    Key Democrats [Baucus and Rangel] were cool to the plan, and said Obama's ideas should be considered as part of a broader effort to streamline the nation's complex corporate tax code.

    "Further study is needed to assess the impact of this plan on U.S. businesses," Sen. Max Baucus (D-Mont.), chairman of the Senate Finance Committee, which has jurisdiction over U.S. tax law, said in a written statement. "I want to make certain that our tax policies are fair and support the global competitiveness of U.S. businesses."…..

    There's a big difference between abusive tax avoidance and legitimate tax policy that recognizes the global economy," said Sen. Charles E. Grassley (Iowa), the senior Republican on the Senate Finance Committee. "To the extent the president continues on the road of cracking down on tax abuse, he can count on my support. But if he's using tax shelters as a stalking horse to raise taxes on corporations at the cost of U.S. jobs, he'll lose me."

    The United States is the last major economy to tax the profits of locally headquartered companies, even if that income is earned abroad. Other nations, including most recently Japan and Britain, are moving to a territorial system that taxes only corporate profits earned within their borders…..

    To level the playing field, Obama would bar firms from taking deductions for expenses that support their overseas investments until they pay U.S. taxes on the profits…..

    By contrast, more than 200 U.S. companies and trade groups have signed a letter asking congressional leaders to oppose Obama's proposal to limit their ability to defer U.S. tax payments. The letter, signed by Alcoa, General Electric, McDonald's and Microsoft, among others, warned that restricting the deferral rules would make it difficult to compete abroad….."

    Watch the video of Obama introducing and explaining this new tax initiative Washington Post.COM
     
  2. Xenophon
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    Xenophon Gone and forgotten

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    Depression, here we come.
     
  3. KittenKoder
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    KittenKoder Senior Member

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    Sounds like a good idea ... but what is he REALLY doing?
     
  4. garyd
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    garyd Senior Member

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    Transfering jobs overseas...
     
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  5. DavidS
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    DavidS Anti-Tea Party Member

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    Yes, I agree. Making rich people pay their taxes instead of keeping their money hidden in off-shore accounts is REALLY going to cause the next depression!! :cuckoo:
     
  6. garyd
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    garyd Senior Member

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    Yes lets be an idiot David and fail to understand anything the article says. Your first clue is that Baucus and rangel are cool to this proposal and they never met a tax they didn't like.
     
  7. Indiana Oracle
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    Indiana Oracle The Truth is Hard to Find

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    After 100 days of some of the most misleading pandering I have heard out of one adminstration over such a short time, it is possible there is something else underneath the photo-op.

    If The Prophet intends to focus on those companies who literally avoid paying corporate taxes via offshore vehicles, that makes sense and I am all for it. The trouble with the laws around this today, however, is that they have(per an accountant I know) deliberate loopholes within them. It will be interesting to see if the Congress has some newly acquired sense of courage and really does close them off with legislation.

    Am not holding breath.
     
    Last edited: May 5, 2009
  8. sealybobo
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    sealybobo Diamond Member

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    Yes, I heard the mega corporations arguments against this yesterday, and just like I predicted, they say this will lead to layoffs, raising prices and it will make American companies less competitive on the world stage.

    Boo fucking hoo. If they don't care about American labor, then why should we give a fuck if they are profitting internationally.

    Either include us or die. We'll give you a tax break, but you have to hire more Americans and pay them more too. Deal? No more outsourcing to India.

    Oh, I forgot, if we don't let them do that, it too will lead to higher prices and layoffs, boo hoo!!!

    And they credit card companies did the same thing the other day. "boo hoo, if you don't let us predatory lend, it'll cut into our profits and we'll have to lay people off and we won't be able to offer low introductory rates, boo hoo".
     
  9. sealybobo
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    sealybobo Diamond Member

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    Glad to see you not toeing the GOP line on every issue.

    They'll do their best to convince you that they NEED these tax breaks. BULLSHIT!!!

    And, you are starting to see the difference between Dems and Republicans.
     
  10. Indiana Oracle
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    Indiana Oracle The Truth is Hard to Find

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    The only line I toe is my own. People read my posts through their own lense.
     

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