I call it a society!

Obama calls for crackdown on offshore tax havens
McClatchy Newspapers

AP By Margaret Talev, McClatchy Newspapers Margaret Talev, Mcclatchy Newspapers – Mon May 4, 2:41 pm ET

WASHINGTON — Following through on a campaign promise to stop rewarding companies that send jobs and money overseas, President Barack Obama on Monday called for eliminating various loopholes that benefit offshore tax havens and ratcheting up overseas enforcement, which he said could save $210 billion over a decade and encourage more job creation at home.

The proposals, which would require congressional action, enjoy support from some Democratic lawmakers, but they face loud objections from others, including Senate Republican leader Mitch McConnell of Kentucky , and from hundreds of the most powerful businesses in the nation, including those that produce technology, pharmaceuticals and food.

Opponents say that Obama's proposals would amount to a tax increase and put them at a disadvantage to foreign rivals who don't face such tax laws in their home countries.

"I want to see our companies remain the most competitive in the world," Obama said in announcing his plans at the White House , flanked by Treasury Secretary Timothy Geithner . "But the way to make sure that happens is not to reward our companies for moving jobs off our shores or transferring profits to overseas tax havens."

As evidence of the problem, a White House fact sheet noted that:

— The effective U.S. tax rate on U.S. multinational corporations as of 2004, the most recent year for data, was 2.3 percent.

— Eighty-three of the 100 largest U.S. corporations had subsidiaries in tax havens, according to the Government Accountability Office .

— Bermuda , the Netherlands and Ireland — all small, low-tax countries — claimed nearly a third of all foreign profits reported in 2003 by U.S. corporations.

Obama wants to reduce companies' ability to defer taxes on overseas profits, end many overseas tax havens and aggressively hunt down overseas tax evaders.

To do so, he proposes tightening regulations and hiring 800 more Internal Revenue Service agents. In turn, he said he'd pump billions of projected savings into guaranteed funding of a research and experimentation tax credit for companies that invest in jobs in the U.S.

McConnell said Monday that while he supports cracking down on tax evasion and offshore shelters, he doesn't back the overall plan.

"I cannot endorse a plan that gives preferential treatment to foreign companies at the expense of U.S.-based companies and the 52 million people they employ," he said.

Marty Regalia, the chief economist for the U.S. Chamber of Commerce , said in a statement following Obama's remarks that "when you limit deferral, you limit the ability of U.S. companies to compete, you impede growth in the U.S. economy, and you cause the loss of jobs — both at the companies directly impacted and companies in their supply chains."

In taking on the Chamber, Obama also is taking on big companies, such as Microsoft , DuPont , General Electric and Eli Lilly , among the more than 200 companies and trade associations that have gone on record in opposition to the move since March.

White House press secretary Robert Gibbs said Monday that "we know we're going to take on some tough interests in that, but the president believes this is a fight we should have and one that we can win." Gibbs said the changes should be seen as a matter of "fairness, not something that will put them at a competitive disadvantage."

Under current law, U.S. companies can defer for years paying taxes on profits if they're putting the money back into offshore subsidiaries. Under Obama's proposal, companies could take deductions for foreign expenses only if they were paying taxes on foreign profits to the U.S.

How companies can take a foreign tax credit also would be tightened, so that the credit reflects how much foreign tax is actually paid and so it can't be used on income that isn't subject to U.S. tax.

Obama would end "check-the-box" rules that allow U.S. companies to set up subsidiaries in tax havens to avoid paying taxes. Going forward, U.S. businesses establishing certain overseas corporations would have to report them on U.S. tax returns.

Obama also would give the IRS more legal authority to get more information from foreign bank account holders in order to determine whether they're attempting to evade U.S. taxes.

In his remarks, Obama criticized "a tax code that says you should pay lower taxes if you create a job in Bangalore, India , than if you create one in Buffalo, N.Y. " He blamed lobbyists for "a broken tax system" and said he is out to change things.

"Nobody likes paying taxes, particularly in times of economic stress," Obama said. However, he said, "most Americans" recognize that "it's an obligation of citizenship, necessary to pay the costs of our common defense and our mutual well-being."

How is the person on welfare supposed to come up with the funds to pay it?

This is long overdue.

Long overdue winx!

Good post!

Thanks.

I was happy when I saw it. I knew he was going to do it though.

Im glad you posted it. Otherwise I might have missed it until tomorrow!

Im off to bed now. Good Night!

Obviously, they cannot. On the other side of the coin, why should they get something for nothing?

Many have worked and paid into the system. They aren't getting something for nothing.

ok, then let me rephrase: If I pay in more, why should they receive more benefits than me?

Thanks. Good night.

Because they won't be able to eat without it.

that is how you argue a case

you bring the case to point

you pull the documentation to back your points

how else do you argue law on an appeal

come on fanta yer over reaching with your condemnation of my post big time

ad libing with the constitution s saying things like separation of church and state which is not even close to being in the constitution

but it is used by a lot of people on a lot of levels

and i would bet you have even used it on occasion




to pull points not relevant to the arguement and you will be told you are wasting the courts time

this hearing is over come back when you can stay on point

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and speaking of ad lib to have it say what you want

you take that liberty on a regular basis with post you seem to be in disagreement with

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and still you have not made a relevant point to counter what i said

all you have done is criticize how i said it

an example of your ad lib to posts




http://mingle2.com/topic/show/221878?page=3

That's skirting the issue. I have my issues with welfare as well though I think we'd disagree some there as well. But dropping all that someone has to pay for our government, unless you prefer anarchy, and expecting everyone to pay the same regardless of ability in no way seems the least bit fair to me. Pay for our government the same way we pay for a washer and dryer in no way resembles fair IMO.

Despite my objects to the National sales tax it does make sense and is probably the most fair way to go. Problem is people would begin to see just how horribly expensive our government really is and riots and the like would most certainly ensue.

the more of the american dream you get

why is it not fair that you pay the same percentage for it as the person that did not get as much of the dream

after all it is the american dream

the more you get of it the more you should pay for it

just as the constitution was set up for it to be

the more of the american dream you earn the more you cost the american govt

under the new tax law,the first thing The President should do is have Turbo Tax Cheat Tim arrested be seeing you

how does he cheat or is that an assumption on your part