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 ..
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 ...
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
Unintended consequences.
Or intended?
When have they ever told the truth about taxes?
When the income tax was first proposed it was just for the rich?
Honest government?
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.
Galt's Island!
Ted Kennedy will not be happy.
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