The corporate tax code is complicated enough that there probably are loopholes to be closed, but this should be done simultaneously with lowering tax rates. The Dems are just looking for grab money for their agenda.
“”There absolutely will be” opposition from business...”
Gee, ya think?
If you’d do away with the confiscatory tax policy, businesses would actually STAY IN AMERICA.
Economics 101: Whatever activity you levy a tax on, you will get less of that activity.
Therefore businesses will find a way to avoid this tax...keeping Obama and Co. from reaping any benefit.
Long Live the Welfare State!
How will Wall Street respond to these changes?
Beware these firms don’t decide to ‘park’ their headquarters right out of America.
And there it is. - We are hiding the fact that America is producing less and less as Socialist tax programs forces real industry to leave America.
Does anyone know anything really produced here anymore?
Most heavy industry is gone. - killed by union demands and endless government policies that make it cheaper to make steel, for example, and ship it halfway around the world than to manufacture it here.
Stanley Tools is gone. Great job Congress.
This is so egregious that it has to be the agenda planned all along. - Nobody could be this consistently stupid over 5 decades as industry flees and immigration soars.
Anyone who does not see where this is going is just not looking.
I think this is posturing, performing for the choir. Congress, especially the senate will not kill their constituents business. The off shore money is foreign profit many think is not taxable anyway.
Look for “Internet use” and “Internet sales” taxes too.
I recommend they move to Ireland, where the corporate tax rate is 12.5%.
In the finest Obama Admin tradition, it will probably be another 1,000 page document that the mind-numbed Congress & Senate will vote on without reading it as usual.
Probably will have all sorts of unnoticed little items from making Chave..er Obama El Presidente For Life, to jailing all domestic terrorists such as U.S.military veterans and Republicans, to giving instant citizenship and voting rights to all illegals, whether they are currently in the USA or not here yet.
Sorry for the cynicism, but the Obama Regime is proving to be the most corrupt and despotic Admin ever. The 4th Reich, here we come.
“The Obama administration will roll out details Monday of what aides are calling a far-reaching crackdown on offshore tax avoidance,...”
Panama just elected its new president yesterday. We are very pleased. He is a mature, wealthy business man. Ricardo Martinelli was educated in the U.S. He owns many supermarkets. He is a multimillionaire entering the presidency and not the other way around.
He will not hesitate to tell that cheeky Kenyan bastard to go to hell and to use the Horn to go from one coast to the other. I would. The heck with treaties.
Second, squirreling money away into secret accounts just screams of impropriety in one form or another.
So, how bout....scrapping the current tax code, easing federal regulation on business.
Yeah, the system is broken all right. Our tax code makes no sense at all. We have very high rates for everyone, but with special reductions based on how much a special interest can afford to buy with campaign contributions.
And does anyone wonder why there is $700B offshore? You think putting a tax on it is going to bring it back? Nope, you are just going to see the corporations pull out of America. Heck, we’re all broke, in hock and about to stifle all productive activity under the wet blanket of cap & tax. No more money to be made here.
What's a good country to look for a job, anyone know?
They soon will be nonexistent here!
Atlas Shrugged ping
http://www.regularfolksunited.com/index.php?tab=article_view&article_id=1566
Obama’s Newest Tax Proposal is a Declaration of War on U.S. Competitiveness
Date: Monday, May 4, 2009, 12:31 PM EDT, 12:31 PM EDT from Grover Norquist
President Obama and Treasury Secretary Geithner have unveiled yet another tax hike proposal — a declaration of war on American competitiveness.
America has the highest corporate income tax rate in the developed world. The United States is tied with Japan for one very dubious honor—having the highest corporate income tax rate in the developed world. According to the OECD, the United States has a combined marginal corporate rate of nearly 40 percent. This compares very negatively to our European competitors’ average rate of 25 percent. The Republic of Ireland stands in the starkest contrast, with a corporate income tax rate of 12.5 percent. In the developing world, rates of 10 or 15 percent are commonplace.
America is the only developed country that double-taxes the international profits of our own companies. If an Irish company earns a profit in France, it pays the French corporate income tax, and nothing else. But if a U.S. company earns that same profit in France, it must pay the French corporate tax and the U.S. corporate tax (minus whatever was paid to France). So not only does the U.S. impose the highest corporate rate in the world, it makes sure that this rate is applied to both domestic and international profits. This is called a “worldwide taxation system,” and is unique to the U.S.
Recognizing the problem this creates, Congress has crafted a confusing set of exclusions, deferrals, deductions, and credits on international profits. In general, U.S. companies can avoid paying this double-tax until they repatriate the profits back to the U.S.
By seeking to take away these double-tax band-aids without lowering the corporate rate substantially or fixing the global taxation scheme, Obama’s proposal will shove jobs and capital out of America and into foreign countries. Obama’s budget and Congressional tax-writers have been clear—they want companies to pay the full corporate rate as soon as the international profit is earned. In a global economy, companies don’t have to take this lying down. It’s a relatively-simple matter for a U.S. company with an Irish subsidiary to become an Irish company with a U.S. subsidiary. The Obama plan will force thousands of companies to make this job-killing decision. Companies that export goods will soon start exporting jobs.
The U.S. should tax our companies the way the rest of the world taxes theirs—territoriality. The rest of the developed world has figured this out: if they want to retain jobs and capital in their countries, they have to adopt territoriality. This means that companies only pay corporate income tax in the country where the profit is earned. The U.S. partially tried this in 2005, when companies were allowed to repatriate deferred foreign earnings at a 5.25% rate—far lower than what they would have to pay otherwise. The result was a one-year infusion of $318 billion in capital to the United States, resulting in $17 billion in additional corporate income tax payments, and the creation of thousands of new jobs.
The U.S. needs to lower our corporate income tax rate to become more competitive. American employers are competing globally with Irish, British, German, etc. companies. It makes no sense to saddle our employers with the highest corporate rate in the world. At the very least, we need to lower our corporate tax rate to 25 percent or less. This simply begins to make our tax treatment of large employers somewhat comparable to our European competitors. When combined with territoriality, this move would begin to change the corporate tax culture in the U.S. from a jobs killer to a jobs magnet.