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. The plan takes aim at a range of financial practices that have combined to erode the U.S. tax base in recent decades. As money has become more readily transferable -- and aggressive tax planning more widespread -- it has become easier for companies and individuals to take advantage of low taxes as well as lack of transparency in many offshore havens. In one big change, the administration is aiming to curb a practice commonly known as "deferral," which U.S. multinationals use to shave their tax bills on their overseas operations. Under current law, U.S. companies can defer taxes indefinitely on the many of the profits they say they have earned overseas until they "repatriate" that money back to the U.S. The administration seeks to sharply limit the tax deductions that companies taking advantage of deferral can take. http://online.wsj.com/article/SB124140022601982149.html Obama recognizes that the CURRENT system encourages companies to move overseas since overseas profits can be deferred forever and never taxed. What a great idea, let's incentivize companies to bring those jobs back by cutting out the deferral loophole. A win/win jobs come back and taxes that should be collected will be to the tune of an estimated 210 Billion. Now that the Reps can't complain about losing jobs they will resort to stating that those closed tax loopholes will cause companies to jack up their prices. If that fails it will be back to the teleprompter/Marxist comments.
I'm sure it does. It involves some wealthy folks or corporations paying more taxes-- a libertarian freak out.
