Skip to comments.President Takes Aim at Foreign Profits
Posted on 02/26/2009 2:36:19 PM PST by reaganaut1
WASHINGTON -- President Barack Obama has proposed a dramatic tax increase on the foreign profits of U.S. multinationals, in a 10-year budget blueprint released Thursday.
The tax increase on foreign income, taken together with proposals to crack down on offshore tax cheating, would swell federal coffers by an extra $25 billion a year in revenue by 2014, according to projections by White House budget officials.
The budget plan would also impose a $31.5 billion tax increase, over a 10-year period, on oil companies, by repealing various tax breaks now enjoyed by the sector. In addition to that, Mr. Obama would reinstate Superfund taxes, raising $17.2 billion over 10 years, much of which is accounted for by excise taxes on oil.
Those changes are part of a package that would raise taxes on business by $353.5 billion over the next 10 years, which could help fund other tax cuts or spending, or reduce the deficit.
"The budget also begins to restore a basic sense of fairness to the tax code, eliminating incentives for companies that ship jobs overseas and giving a generous package of tax cuts to 95% of working families," Mr. Obama said in his budget message.
The plan is short on detail regarding how Mr. Obama would roll back tax benefits for U.S. multinational firms. It also lumps in international tax reforms with unspecified proposals to shut down offshore tax evasion, raising a total of $210 billion over the next 10 years.
Marc Gerson, an attorney at Miller & Chevalier, said that taking away tax advantages now offered to U.S. multinational firms might harm those firms' ability to compete globally. "The current system allows them to effectively re-deploy foreign earnings, or competitively price contracts," he said.
(Excerpt) Read more at online.wsj.com ...
Punishing U.S. multinationals will simply encourage U.S. companies to shrink by selling foreign operations to foreign companies.
Didn’t Halliburton recently move their HQ to Dubai?
“impose a $31.5 billion tax increase, over a 10-year period, on oil companies’
And gas prices? Will the increase be blamed on the messiah?
Of course not. The obozo leg humpers in the media will blame the greedy oil companies.
Obama wants to run every last job out of the country.
Karl Marx would call that a good thing.
This dude really is as crazy as I thought he was.
Yep! And just watch the percentage decrease of U.S. multinationals in the USA as they headquarter overseas.
Does anyone realize how bad all these proposals are, like taxing oil companies in a recession and when he claims he wants “energy independence”? This is a massive joke - on us.
just another roadblock to recovery.
Which will cause job losses in the countries where those companies have operations.
So let's not just destroy our own economy. Let's destroy the economies of other countries.
Trivia Question: Where will the next Pearl Harbor take place? How many megatons? Which country or country will drop the bombs?
Crazy? No. A calculating, America-hating, Islam-loving Communist? Yes.
But, but, but......"Amerrrrricans can dooo annnnnythinnnng!!!!!" /Jindal-singalong
Obama has always dreamt of being him.
He is pushing every communist program he can to turn the US into what his father would have approved of.
“President Barack Obama has proposed a dramatic tax increase on the foreign profits of U.S. multinationals,”....
The sinking of America brought to you by the three ring circus in the white house!
Bottom 50% of tax payers (138 million total based on 2007) is about 70 million taxpayers. The bottom 50% is defined as 30,000 or less so lets assume the average income is $25,000.
The bottom 50% pay only 3.3%. Lets assume we change the AMT so that all Americans must pay 8% (a 4.7% increase for the bottom 50%).
So lets do the math
70 million * 4.7 percent * $25,000 = $82.25 Billion
The per person tax increase would be about $22.60 per week
Normally, I oppose tax increases across the board. But I see such a move as normalizing the gross tax imbalance that is such a clear violation of the 14th Amendment. Hopefully, we could get to either the Flat or the Fair Tax.
Normally, I oppose tax increases. However,
Rush said that what Obama presented wasn’t a budget. It was a coup.
Um, that’s not likely. All they have to do is headquarter overseas instead. Then the US can’t collect on such taxes AND they then have every incentive to close their US offices.
|All they have to do is headquarter overseas instead. Then the US cant collect on such taxes AND they then have every incentive to close their US offices.
You have to hand it to them for telling the truth. After all, they said they were "eliminating incentives for companies that ship jobs overseas." Sure enough, they eliminated any incentive to stay here. So the companies (and their customers) are better off shipping their headquarters jobs overseas.
...by creating incentives for companies to move completely overseas.
These people are totally out of their minds with STUPID.