Even offshore, the Taxman may cometh, as President Obama announces his plan to close loopholes that allow U.S. corporations to escape paying U.S. taxes by setting up skeleton “tax haven” operations in foreign countries.
“It's the kind of tax scam that we need to end,” said Obama in a statement from the White House. “It's a loophole that lets subsidiaries of some of our largest companies tell the IRS that they're paying taxes abroad, tell foreign governments that they're paying taxes elsewhere -- and avoid paying taxes anywhere.”
The White House contends the action will save taxpayers $210 billion over the next 10 years by exposing an estimated $700 billion in hidden corporate profits to taxation.
You might recall our June 2007 report on a GAO investigation that turned up a single office building in the Cayman Islands listed as the home address of 12,748 U.S. companies.
Along with closing down the foreign tax havens, Obama, in a White House Fact Sheet, proposed taking steps to remove existing tax incentives for companies that shift U.S. jobs overseas, while creating new tax incentives for companies that create jobs at home.
The U.S. Chamber of Commerce, however, warned that Obama’s plan would ultimately result in the loss of U.S. jobs by limiting the ability of U.S. companies to compete with their overseas rivals.
”Tax increases that hurt U.S. companies’ global competitiveness hurts U.S. workers here at home,” stated the Chamber in a press release. “A huge tax hike on U.S. employers is not the way to stimulate our economy. Congress should reject this approach.”
Also See:
Cayman Isle Building Houses 12748 US Companies
GM, Ford: Getting Bailouts While Dodging Taxes
Comments
Applause for Obama, I am tired of the constant exportation of Jobs to places like India and China. IBM Being the latest, telling American Workers that they no longer have a Job, not that there is no work, but because the work on American Shores is being exported. IBM reaps many benefits from this country, including government contracts. Any company can choose to export the work, but these companies that exhibit Anti-American Worker Tendencies cannot benefit from Taxpayer Funded Government Projects, lets see how Quickly the balance sheets shift in that case. At the current rate, we will all be working in McDonalds, but this is good for the country???
Hats off to whoever wrote this up and psetod it.