Implication's Post

The future of the corporate tax policy will most likely be decided by the current political administration no later than the next couple of years. There are two options that congress will take, the first being to adopt the new policy on corporate tax made by the Obama Administration. http://www.law.stanford.edu/news/details/2882/Obama's%20Push%20To%20Levy%20Taxes%20On%20Overseas%20Profits%20Alarms%20Tech%20Giants/ This proposal will shut down the loopholes in the current corporate tax structure that grant many deductions and tax cuts to multinational companies. These loopholes are put in the current system to allow American Corporations to compete against international competitors, which operate under a much more profitable tax structure. As a result, our companies will either leave the United States to find another country to remain successful, or they will stay in the U.S earning smaller profits and be less competitive with the rest of the World. Due to the easiness of which companies can outsource and move capital around because of the today’s technology, I think the first result is more likely to happen. http://www.businessweek.com/bwdaily/dnflash/content/may2009/db2009054_337394.htm The implications our corporations leaving the country take a very negative effect on our economy as we lose market shares overseas, Jobs, and income from American corporations.
If Obama’s proposal plan is shot down by congress our corporations will remain in the U.S, but they will still be paying more money to foreign nations collectively then to the U.S. Even though American Corporations will still be paying foreign nations more taxes, it is better alternative then losing all of its businesses to foreign competitors. http://www.notoriouslyconservative.com/2009/06/obamas-multinational-tax-policy.html For our counties future I hope that business lobbyist in congress will prevent Obama’s proposal from being adopted as it would create a business environment impossible to compete internationally.