Making Things Worse

Obama’s new tax proposal to close tax loopholes on multinational American based companies will do little to help the economy. Obama’s wishes to add new regulations to the international tax code to raise more money to aid the massive spending in Washington. The proposal plans to crackdown on companies taking advantage of foreign tax deductions and says it will bring more jobs back to the U.S. I think this tax new policy will cause an unintended loss of domestic business and jobs.
The business community has put up much opposition to Obama’s new proposal, and experts fear that many companies will leave to compete in foreign markets to avoid Obama’s new tax code. Steve Ballmer Chief Executive Office of Microsoft said, “It makes U.S. jobs more expensive, we’re better off taking lots of people and moving them out of the U.S.” If Microsoft the most competitive U.S Company leaves the U.S. to continue to thrive, what companies will stay.
The loopholes Obama insists on closing in the tax code, to gain more tax revenue, were put in place to allow companies to be competitive in the global economy. U.S. Corporations are one the few countries that pay taxes on foreign earnings to where the money was earned and also when the money is sent back to the U.S. These loopholes were designed to offset the burden of a double taxation policy and to allow corporations to be more competive globally. Furthermore I fail to how increasing taxes on foreign operations will bring home more jobs. . We cannot expect our corporations to compete against other foreign multinationals, selling the same products in the same markets with more favorable tax policies. America’s Corporations, that secure our financial future, will not operate under unfair tax conditions. Corporations will be forced to find other countries to continue to thrive and will leave taking their profits and jobs elsewhere.