Obama to Crack Down on Business Tax Havens

Obama to Crack Down on Business Tax Havens

www.truthout.org

President Barack Obama plans to propose changes to tax policy certain to be unpopular with corporations with international divisions and individuals who use tax havens. Obama also plans to ask Congress for 800 new federal tax agents to enforce his broad requests.

Obama's two-piece plan, to be announced at the White House on Monday, would eliminate some tax deductions for companies that earn profits in countries with low tax rates, as well as consider U.S. citizens who use tax havens such as the Bahamas or Cayman Islands guilty of violating U.S. tax laws. If Obama wins congressional ap

(visit the link for the full news article)

Wow. This is surprise, just as I thought our country could not be any less fascist this comes my way... While it is most likely just a ploy to make us think that the government is really in control. Its all complete bs. If there is one thing the government loves is tax dollars. get obama yes u can lol.

www.truthout.org
(visit the link for the full news article)

reply to post by iamjesusphish


Yeah, sure ...

I have owned many businesses in my life and always had to pay my "fair" share of taxes simply because I chose to only do business in the US and chose to employ legal workers.

My parents are Bermuda residents and I still have no sympathy for multinational corporations who avoid legitimate taxation.

In the case of private citizens no such avoidances are available. No matter what country I go work in, I will be taxed at an equal or greater rate than the US. If that country has lesser or no taxes I have to make up the difference to the US government.

If I have to do it, and the overwhelming majority of US businesses have to do it, then the big boys should also pay their fair share.

Hell, my tax dollars bailed them out, the least they could do is pay me back.

Still, the lobbies of the industries who use such tax havens are some of the most powerful ones on Capitol Hill, so there's going to be strong opposition to this.

We shall see ...

Originally posted by iamjesusphish

Obama to Crack Down on Business Tax Havens

www.truthout.org

President Barack Obama plans to propose changes to tax policy certain to be unpopular with corporations with international divisions and individuals who use tax havens. Obama also plans to ask Congress for 800 new federal tax agents to enforce his broad requests.

Obama's two-piece plan, to be announced at the White House on Monday, would eliminate some tax deductions for companies that earn profits in countries with low tax rates, as well as consider U.S. citizens who use tax havens such as the Bahamas or Cayman Islands guilty of violating U.S. tax laws. If Obama wins congressional ap

(visit the link for the full news article)

Well well well what a great plan to run off the remaining profitable businesses in the U.S. How about foreign imports that are not taxed by their prospective countries and are even subsidized? How are the U.S. corporations to compete against untaxed foreign products?

If obama goes after Sysco Corporation just watch food costs skyrocket. Remember Hershey Corporation moving to Mexico now you know the reason why because they knew what was coming when it came to taxation.

Corporations will leave the U.S. by the droves just watch and see. You may say these Corporations need to be taxed and pay their fair share. If these corporations are taxed absorbantly guess who pays you do for the end product.

Remember, to Obama there is no difference between a tax loophole/haven and a tax deduction. He has already planned to cut back the mortgage interest deduction on a segment of Americans.

He'll becoming for the rest of your money next, with Cap and Trade.

This fool won't be happy until he has control of every dollar you earn.

The best thing Obama/Biden have going for them is that they have been able to sell the idea of 'legitimate taxation' to the masses. Never mind examining the tax code itself, or making it simpler to understand, or going to a flat tax. Just tax those with money till you either drain them or scare them away.

Too bad we're not all as lucky as Peggy Joseph, eh?



CHANGE You can believe in. Better start saving your change in a mason jar.

Taxage

(Like the new word? Shows you the power of coffee, LOL). So, what is taxage you're wondering? Well, if my thinking is clear enough on this, it may turn out to be the Second Depression's analog to the 1930's tariffs argument. You know, just like the corporatists were able to market the idea that the Smoot-Hawley Tariff Act was renounced for setting off a global 'tariff war' that exacerbated the first Depression.



We read this morning how the Obama administration is about to seek "tax changes for U.S. firms overseas." While the official announcement won't come for a few hours, this will be a 'biggie' to watch since the multinational corps will scream bloody murder. Why? Because they are, if you pardon the timing of the phrase here, cutting a fat hog when it comes to taxes. The Obama administration (I think rightly) trying to make sure that outfits that outsource are on equal tax footing with outfits that are solely domestic.



This is a huge game, of course. But in the end, it spells either the end, or at least a decent decline in globalism. For years under the asleep at the wheel past administrations, multinationals could benefit from the cheap labor rates overseas such that even after transportation costs, they were able to make gobs and oodles of cheap goods in places like, oh, Asia, for instance.



But what happens when tax policy catches up, when the former third world standard of living (hence wages) come up a bit and simultaneously, the cost of transportation goes up as well? You don't need to be a rocket whiz to get this one figured. Corporatism can see the brick wall ahead.



All of which will be dandy for America - particularly if the administration continues to promote reinvestment in America and energy independence. But to get from here to there will be quite a battle and I look forward to pointing out the multinational's 'scream bloody murder' ad campaigns when they come along shortly. If this game really does change, then I'd be mighty pleased - maybe even to the point of being inclined to capitalize the word 'president' again.

link to UrbanServival.com

I always read Urban Survival... This was a clip from today. Very fitting for the topic.

reply to post by wixx24

Originally posted by wixx24
The Obama administration (I think rightly) trying to make sure that outfits that outsource are on equal tax footing with outfits that are solely domestic.

And herein lies the problem. Obama has no right dictating the terms of competition between companies. Unless, that is, you want to go to a purely socialistic form of economy/gov't.

He's already dictated salaries and bonuses for some industries. WTF? I thought that was the realm of the shareholders?

This is a huge game, of course. But in the end, it spells either the end, or at least a decent decline in globalism. For years under the asleep at the wheel past administrations, multinationals could benefit from the cheap labor rates overseas such that even after transportation costs, they were able to make gobs and oodles of cheap goods in places like, oh, Asia, for instance.

And those cost savings are largely passed on to the consumer.


Why should we be forced to pay $100 for a pair of sneakers than can be bought at Wal-Mart for $15? So that we can subsidize some union worker's salary and benefits?

But what happens when tax policy catches up, when the former third world standard of living (hence wages) come up a bit and simultaneously, the cost of transportation goes up as well? You don't need to be a rocket whiz to get this one figured. Corporatism can see the brick wall ahead.

And if that means jobs returning to America, the that's all well and good. It's better to let the corp's figure that one out and either adapt or go bust. About time we did away with this bailout mentality.

Don't forget, that if you tax the corps at a higher rate, guess who gets to pay Obama? It won't be the corps....they'll just pass the cost on down to you and me.

How are the U.S. corporations to compete against untaxed foreign products?

By placing tariffs on the imports. The same thing foreign countries do to US imports. Trade wars and tariffs are always being waged, closing a tax loophole won't change that in any way.

Any 'cracking down' will be very selective. The makers of this system will not be depreived of their loopholes.

ummm...I think that some of those $100 shoes are coming from places like china, are are being made by people earning low wages....so, the idea that all this offshoring is keeping costs down I think was only the bribe they used to get us to buy into the idea, that savings has now been converted to pure profit for the corps and we seem to be paying more now than we ever did..

and well, my husband occasionallly drives truck for a living, usually when the economy tanks like it is now. I don't know if you are familar with the upstate area, but there are tons of apple orchards there, and in the middle of all these apple orchards is a juice manufacturing plant. well, my husband once delivered a shipment of frozen apple concentrate to this factory. he asked them why on earth they were imported apple concentrate when they have apples all over the place up there....well, comes to find out, they company gets a tax incentive if they do, so they do....
our apple juice doesn't seem to have gone down any since they started imported this, if anything it has gone up!! and well, I don't see how it could be any cheaper to ship something halfway around the world that you have growing right in your backyard. my bet would be it ain't cheaper, not unless you add in the tax subsidies that the gov't is giving to bribe you to do it!

also, the cost of those 15 dollar pair of shoes, I think, is also much higher. the offshoring has done a number on the wage scale in this country, and I got a feeling that if you looked at the number of people being served through the social safety net, it has been increased due to it. and well, you'd have to add in part of the cost of those systems into that pair of shoes.....since, the people who were working at these good paying jobs are now working at much lower paying jobs and well, regardless of where you import your products from, well, these people still need housing, food, heat, medical care ect.....you are still paying for it!

reply to post by dawnstar


The sole reason, absent any tax benefits, to ship something half-way around the world and then re-import it, is the cost of labor to manufacture it. Automation costs are the same anywhere you go; it's when you add in the human hands element that it makes a difference.

That's why so many products are "Assembled in Mexico", or in Taiwan.

But I see your point about the apple juice. I remember reading a similar story about petro a short while back.

If the history of taxation has taught us only one thing, its that tax evaders will always outsmart the authorities.

Obama should just slash corporation taxes down to 10% to encourage businesses to "legitimise" their income rather than stashing it away in tax havens.

When the tax rates are in excess to the value procured by those taxes, then why should anyone bother to pay them simply because they are in power. Good on the companies who evade tax... they're helping to starve a bureaucratic and unconstitutionally bloated government.