Posted on 02/03/2015 11:52:56 AM PST by TangledUpInBlue
President Barack Obama's fiscal 2016 budget will seek new taxes on trillions of dollars in profits accumulated overseas by U.S. companies, and a new approach to taxing foreign profits in the future, but Republicans were skeptical of the plan on Sunday.
Reviving a long-running debate about corporate tax avoidance, Obama will target a loophole that lets companies pay no tax on earnings held abroad, the White House said. But his proposal was certain to encounter stiff resistance from Republicans.
In his budget plan to be unveiled on Monday, Obama will call for a one-time, 14 percent tax on an estimated $2.1 trillion in profits piled up abroad over the years by multinationals such as General Electric (GE.N), Microsoft (MSFT.O), Pfizer Inc (PFE.N) and Apple Inc (AAPL.O).
He will also seek to impose a 19 percent tax on U.S. companies' future foreign earnings, the White House said.
(Excerpt) Read more at reuters.com ...
Many of these companies voluntarily jumped into bed with Obama. They shouldn’t complain as he now screws them.
He wants to tax US companies but not foreign multinationals.
Wouldn’t that reduce the ability of US businesses to compete with their foreign rivals?
As usual, its about scoring populist points not about enhancing our economic position in the world market.
If every country a company does business in were to tax them on their worldwide profits, the total tax liability would quickly total over 100% of earnings, let alone profits.
And while you're at it, get those rich people who current foot 70% of the Federal tax receipts to pay their fair share. Of course, Stupid, that means you need to lower their rates significantly, while raising rates on 51% of the population who are currently freeloaders on the system. Who knows, maybe then they'd invest the money here rather than hiding abroad. After all, Stupid, how many workers were hired by poor people?
This is 100% true. I've been saying it about my own employer, who was quick to jump on board OCare. Now, we get the shaft, and deserve every bit of it.
There were a couple good threads on this subject (different articles tho) yesterday. The important points in opposition are:
US Corps are in many (if not all) cases compelled (for a variety of reasons to reinvest profits in the countries where they are made. So it will be easier for them to pay these proposed taxes out of their domestic US operations. Which will have the following results:
First dividends will be reduced and stock prices will fall. This will hurt US investors, particularly senior citizens/retirees.
Second, less money will be available to invest in domestic US operations, which will hurt US workers.
Third, certainly some portion of the taxes will be passed along in the form of higher prices. Which will hurt US consumers directly, and economic growth (due to curtailed spending by those consumers) indirectly.
And yet, libs and the media can’t figure out why so many companies are now off-shoring their “official” Headquarters away from the United States...
Clinton pulled this crap in 1993, raising taxes, approved by Congress on the previous year’s wages.
In this instance, Obama is doing the same thing, albeit to heartless corporations.
I wondered then, as I do now, How they can essentially ex-post-facto a fine, levy or tax?
It was already taxed under the current laws or not taxed under current laws.
Except that this is the “two” of a one-two punch. The first being the EO last Fall that limits the ability of US corps to offshore their HQs.
Basically amounts to nailing their feet to the ground then picking their pockets. And again, the burden of this will ultimately be highly regressive in nature in being a stealth tax on retirees, workers and consumers.
"a loophole that lets companies pay no tax on earnings held abroad"
There is no such thing as a "loophole" that frees companies from paying taxes on foreign earnings. They PAY the taxes to the country that they are doing business in. The problem for these demagogues is that the US government is not getting the money. They just want more money and power.
I have an idea Mr President, cut the highest corporate taxes in the industrialized world and see what happens.
One time. Right.
Absolutely right. These companies already pay taxes overseas. Obama wants to do double taxation, that will make US companies non-competitive overseas. It's not enough that Obama wants to destroy our companies doing business here, he wants to crush them anywhere they do business. Many companies are pulling up their roots and locating outside their original nations. This will tempt many US companies to do likewise.
1993 is about when all of this began.
Every single president since (including) Clinton has sold America further down the river. Our debt has been rapidly growing every single year. Every year.
Just last year, just with China, America racked up more than 318 billion dollars, and that number is rapidly growing.
Someone needs to stand up for America.
I hope to God it is Republicans.
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