Monday, May 04, 2009

Obama Tax Proposals Crack Down on US Businesses "Parking" Money Overseas

Firms Face Tighter Tax Rules - WSJ.com
WASHINGTON -- The Obama administration is rolling out details Monday of what aides are calling a far-reaching crackdown on offshore tax avoidance, targeting many U.S.-based multinational corporations and wealthy individuals.

President Barack Obama will flesh out a proposal included in his February budget blueprint seeking to curb the practice of parking foreign earnings in offshore tax havens indefinitely. By some estimates, $700 billion or more in U.S. corporate earnings have accumulated in overseas accounts in recent years.

The plan to be announced Monday will go further. It aims to change the legal treatment of offshore subsidiaries and structures that companies have used to avoid not only U.S. taxes, but taxes in other developed countries as well...


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White House officials said the latest proposals simply follow through on Mr. Obama's frequent criticism that current U.S. tax rules encourage multinationals to move jobs overseas. The new tax plan also aims to increase incentives for job creation in the U.S., they said, noting that some of the money raised would be used to cover the cost of extending a soon-to-expire federal tax credit for research costs.


So, Charlie, your thoughts?

11 comments:

charlie stella said...

JD, I feel like a celebrity … my thoughts are good, I’m glad he’s doing SOMETHING that at least appears as if he’s looking out for all us suckers (assuming he gets it done), but that will NEVER excuse what he and his party and the other party did to us in the first place. Christ, more than a few admitted to not even reading the legislation. And if this isn’t a token attempt to go after the wealthy, it doesn’t do anything for all those who’ve lost their jobs (never mind their homes) post the bailouts.

Sorry, but there’s just no excusing that. I'm sure you want me to give in, so to speak, but I can't excuse what this government just did to all of us.

If he seized the offshore assets it would be a nice gesture, but it doesn’t turn back the damage already done (we’re talking decades of lost employment benefits to workers in the forms of givebacks on hours, benefits, salaries, etc.) aside from the lost jobs.

I like the gesture (because so far that's all it is), but he’s got an awful lot to make up for and I think you’re kidding yourself if you think big business (or his party) will let him.

But let’s see if he gets this one thing done. So far it’s just talk.

charlie stella said...

From CNN: Advisor for the bankrupt automaker estimates that Chrysler will burn through $15.7 billion during restructuring; expects losses to continue through 2011.

Yeah, this was a great move. I only WISH I could own 55% of that ...

Joseph Travis Garnett said...

I agree. This is the first thing that BO has proposed that I like. But, I think he'll never get it done. Once someone tells him that the Kennedy clan has most of their assets in foreign accounts and offshore investments to avoid playing US taxes, the plug will be pulled on this idea.

But as always, he will look good for throwing the idea out there and the media will eat it up and kiss his butt.

JD Rhoades said...

Poor Joey. It must be terrible to be so bitter.

charlie stella said...

JD, at some point you have to quit poking at the right and asking your democrats to do something worthy of all those votes.

I mean, seriously ...

Joseph Travis Garnett said...

Rosy: Why would I be bitter? Like I said I would LOVE the idea. I'm sick of playing by the rules, while the "special" people don't have to. Get the bastards that say they are great Americans, but then they hide their cash from the Government's greedy hands. Get them all!

But it will never happen. It's just "smoke and mirrors." Say it, let the media go with it, and then let it fade away. It works...
Guess I'm just a realist.

And as for the Kennedy's being historically these great Americans (Senators, Activists, Environmentalist,... all 101 of them) Why do the have their money in overseas trusts? How American is that?

JD Rhoades said...

Gee Joey, don't you ever get tired of the taste of sour grapes?

JD Rhoades said...

Charlie: there's the beauty. I didn't have to ask.

JD Rhoades said...

Hey. Joey! I seem to remember your pointing to the market as proof investors had no confidence in Obama. How do you feel now that the NASDAQ achieved its highest closing price since Election Day?

Joseph Travis Garnett said...

Gee Rosy: Now you're an economist. NASDAQ isn't the market, the S&P500 is the better gauge. (You're out of you're element) I guess your point is that BO has all the investors ecstatic about what lies ahead.

How's your 401K doing? Or the job outlook in your childrens future?
Are you ready to jump back in?

Bye, Gotta get some sleep-I work for a living.

JD Rhoades said...

the S&P500 is the better gauge. (You're out of you're element) See post above this one.

Heh. You walked right into that one.