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.
They chose the form of the Destructor, alright.
Obama isn’t any wimpy Stay-Puft Marshmallow Man. When he sets out to destroy an economy he means it.
Look for U.S. based multinationals to be shuttering their doors and moving overseas ... and thousands of jobs with them.
Here's a sneak preview of what they're having for Thanksgiving dinner this year at the White House ..
taken together with proposals to crack down on offshore tax cheating
ask Ted Kennedy
When have they ever told the truth about taxes?
When the income tax was first proposed it was just for the rich?
You are too trusting.
Or by moving overseas and leaving a separate entity here that is an arm of a foreign corporation.
Yes, and not only that, it will greatly increase the trade deficit again. Prices for goods we no longer make here will be sold back to us at much higher costs.
We will lose countless more jobs also, because outsourcing will go to the lowest bidder and higher fees will be charged for those services to American companies forced to use them, due to the increased taxes for those services.
Anybody know an island we can take over?
“Headquarter here, bank here: no Capital Gains taxes, no Corporate Income taxes, just a business friendly environment!”
Why have a US based business?
Or by encouraging US companies to become foreign companies. If GM goes belly up here, its foreign subsidiaries will still survive.
This is simply Protectionism 101. It NEVER works and has repeatedly tanked countless economies of countries insisting that they are the exception to the rule, and verily can make it work.
But then, we saw this coming months ago and know full well the outcome without waiting to see if it actually works.
Nobody should be surprised. This is the endpoint of democracy. The majority vote themselves monies from the public treasure, and vote for such monies to first be legally taken from some small minority (under 5% of the population). As the markets respond to this legalized theft, government revenue will diminish and shrinking majorities will move down the food chain to take from growing minorities, until 51% are taking from 49%. Following this, the egalitarian facade will be abandoned, with those so deemed by the government to be able but unwilling to work placed in labor camps.
Throw away the constitution, throw away any value ascribed to liberty, and this is what you obtain. It is a mathematical reality - the republic has been supplanted by a democracy. The conservative fusion held it off for a few additional years by motivating folks who would otherwise vote for “more free stuff” to instead vote according to non-economic principles. Demographic realities doomed that effort.
The sole remaining countervailing force is the lack of political globalization - entailing the barriers of war and migration, as well as economic competition. Once a global legal and economic framework is agreed upon, mankind will complete the descent into democratic socialism and an age of tyranny. That is not our future - it is the future of our children.
This is exactly what occurred to me. Such a tax will make those overseas operations more valuable to a non-US company than a US company.
Why won’t our leaders get a clue. If we lower the US corporate rates to the lowest in the world, a large number of foreign companies would start operations here. Also if we don’t tax the worldwide income of US multinationals they will be able to expand versus the competition. I kind of think having Coca-Cola as a US company owning things all over the world as a healthy thing for our economy. Much better than a Swiss company owing the Coca-Cola brand.
Well, This will certainly help the US Stock Market and domestic economy.
Our family business started the transition almost two years ago. The move off shore was completed November 2008.
Ted Kennedy will not be happy.
Nah. Galt’s Gulch was a place for constructive folks to hide and survive. This would be a place to do business, bank, launder money, hide funds, and generally create more wealth.
Think of it as Singapore and Hong Kong combined, but more so, without the PRC as a neighbor or owner...
Republican leaders should lead the charge in accusing Obama and the Democrat Congress of slowly destroying this country and our way of life.
Start calling them out on their plans to heavily tax oil companies which will result in the oil companies heavily taxing everyone who drives or uses electricity. Start accusing the Democrats of taking what should have been a pure emergency stimulus bill and instead layering it with unrelated wasteful spending that borders on political malpractice with much more to come. Finally, start accusing them of damaging the U.S. currency with their pet project spending at a time when the country is in debt and can’t afford it. Accuse them of behaving the same way the lenders & automakers have been.
Pitcairn Island with it’s own communications satellites.
And a good harbor, and a good airport and some great hotels, restaurants and office space.
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