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The plan also would make it harder for individuals to stash money in overseas accounts to avoid taxation. Obama will roll out his ideas in an announcement at 11:05 a.m. EDT, where he will be joined by Treasury Secretary Timothy Geithner.
U.S. officials said Obama wants to follow through on a campaign promise to change the tax treatment of 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 in the next decade....
Obama To End Tax Breaks For Corporations That Ship Our Jobs Overseas
Seeded on Mon May 4, 2009 10:45 AM EDT
Article Source: Yahoo! News- Enjoy this article? Help vote it up the 'Vine.
- Public Discussion (14)
Great news!
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 a letter to congressional leaders in March opposing changes to the "deferral" provision.
A central provision would prohibit companies from deducting expenses supporting their overseas operations until they pay taxes on offshore profits.
The officials said the plan would also end a practice by which some firms take big deductions against their taxes by inflating the amount of foreign taxes they have paid.The proposal also includes extension of a research and experimentation tax credit the administration says businesses have been pushing for, which is expected to give a tax cut of $74.5 billion over 10 years to companies investing at home.
In addition to the changes to the deferral provisions, separate proposals in Obama's plan would raise $95 billion by cracking down on overseas tax havens. Such tax havens became a major topic at the April meeting in London of leaders of the Group of 20 major economies.
The Obama plan would close loopholes that allow firms and individuals to hide income. He also plans to bolster enforcement of overseas tax evasion and wants to see stiffer penalties for those who fail to meet reporting requirements.
- 2 votes
#1 - Mon May 4, 2009 10:51 AM EDTPersonally I think we should wipe clean all tax writes off and replace them with only write offs that benefit the country in some manner. Using our tax code to promote industry here in the states.
And make it the responsiblity of either the tax payer or non profit to prove their benefit to the american citizen.
Business expenses like machinery or any other ingrediant business expansion here in the United states should be tax free.
Making the tax code work for the population instead of promoting globalization. Globalization will happen just fine on its own.
- 3 votes
#2 - Mon May 4, 2009 11:20 AM EDTBig surprise...Republicans are protesting claiming Obama is raising taxes...
- 2 votes
#4 - Mon May 4, 2009 1:30 PM EDTDo they have a string on their back that only allows them to spit out a few phrases? 'SOCIALIST' 'HE GONNA TAKE YOUR GUNS' 'RAISING TAXES!'
- 2 votes
...Do they have a string on their back that only allows them to spit out a few phrases? 'SOCIALIST' 'HE GONNA TAKE YOUR GUNS' 'RAISING TAXES!'...
...and your trailers (I mean mobile homes).
- 2 votes
In one proposal businesses are poised to fight, Obama would tighten tax-code provisions that allow firms to defer paying taxes on profits they make overseas as long as those earnings are plowed back into the foreign subsidiaries.
That portion of his plan has drawn opposition from big multinational firms as Pfizer Inc and Oracle Corp.
The president said he also would close loopholes and bolster enforcement to prevent companies and individuals to prevent overseas tax avoidance.
This is fascinating. I consider this initiative as the opening salvo of a war that could give the country's economic controls back to the people. These controls presently reside in the hands of international corporations whose interests have nothing to do with this country's.
- 2 votes
#5 - Mon May 4, 2009 1:36 PM EDTWhose interests have nothing to do with this country....
Well, without this country, these companies would lose a considerable portion of their consumer base. Of course these corporations care about this country - look at their philanthropy - these corporations fund major hospitals, provide grants, support literacy programs, etc. Without looking at the track record of each organization, it is too easy to assume they are completely selfish. The difference is that when these corporations set up foundations and programs, they get to direct their money to the issues they believe in - as opposed to letting the government put it wherever it chooses. If taxation were really fair, we would have "Option" boxes on our returns to direct which programs our dollars support.
- 1 vote
#6 - Mon May 4, 2009 4:29 PM EDTUnfortunately Barbara, corporations do what maximizes profits. They legally obligated to do so. Just a fact.
I will concede that ... Lucky us, we sometimes indirectly benefit from them maximizing their profits, which can be achieved by lower their taxes through their donations, philanthropy, grants, nonprofits, etc.
- 3 votes
Barbara Jo
About my
...whose interests have nothing to do with this country's.
I overstated my case here. However, the American People cannot yield its power to International corporations whose interests are, by definition, international. It makes sense for them to ship jobs overseas and look for tax heavens elsewhere since doing so increases their profits. But what makes sense in their boardroom often goes against the best interest of the people.
It is imperative to clearly make the difference between corporate and national interest. Lobbying is a case in point. It is a powerful tool that enables political manipulation by corporate interests
- 2 votes
Unfortunately Barbara, corporations do what maximizes profits. They legally obligated to do so. Just a fact.
I will concede that ... Lucky us, we sometimes indirectly benefit from them maximizing their profits, which can be achieved by lower their taxes through their donations, philanthropy, grants, nonprofits, etc.
Not good enough to sometimes benefit! When CEO's decide to maximize their profit by putting hundreds or thousands of americans out of work and outsourceing their jobs to foreign countries, it is not good for america! It's good for the CEO's who's bonus's are tied to their stock options in the corporations they run, and it's good for the shareholders. But how is it good for america to put hundreds or thousands of americans out of work, who may lose their homes, their childrens chance at furthering their education, lose their family health coverage, and put them in the unemployment or welfare lines? How much in profit do they have to make to justify throwing employees with 20 to 30 years of loyal service on the garbage pile? If the only plan these CEO's can come up with to improve profits is to outsource lower level jobs to foreign shores, they should be fired immediately and their jobs should go to whoever comes up with a newer and better plan!
- 1 vote
#7 - Mon May 4, 2009 5:59 PM EDTI agree with you William. I am in no way in support of the current and past corporate manipulation of our government and the preferential treatment they receive. I don't care if they all go out of business. They're not looking out for our interest anyway.
(Just a clarification of my own stance)
- 1 vote
As I have always said. If people in the USA are out of jobs, they are not going to buy anything, or be paying taxes to support this country. If the USA has jobs that keep people working and bringing in a weekly paycheck, the people are going to purchase products, pay taxes, and give to charities. Since all of the problems this year, every corporation, business, etc., has plummeted. Why, because the American people are without jobs and cannot, or will not, purchase anything other that what is absolutely needed. It speaks for itself boys, that without Americans working, paying taxes, and giving to charity, this country and all of the other world countries are going down. I am shocked that the USA was the only country keeping all of the other countries in the world afloat!!!!!! Hopefully, the companies are now realizing this and will keep jobs in this country. The bottom line is "If America goes down, so will every other country in the world" and then where will the corporations see profits????
- 1 vote
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