As an attempt to correct my slight conservative bias on the issue of corporate tax, I think that it is important for me to recognize the current democratic administration’s views and arguments. Obama has been voicing his opinion that the current U.S. corporate tax code gives incentives to business’s to outsource production overseas. The problem is not that our corporations are not successful, but that are only successful while producing overseas and as a result we do not see any fruits of their tax revenues. For the first time ever in 2008 it was reported that American Corporations paid more taxes overseas than domestically. Obama’s proposal to fix the problem with the current tax structure has not gone over well with some of major S&P Corporations. The proposal, combined with a $60.1 billion plan to limit many expense deductions for American companies that take advantage of laws allowing them to defer tax on foreign profits and a $43 billion crackdown on abusive foreign tax credits, would be the biggest tax increase on U.S. corporations since 1980’s.
Corporate and most of conservative America think that Obama’s new plan would destroy the competiveness and success of U.S. business. I understand President Obama’s concern with all of our corporate money being taken away by other countries. At the same I fear that his plan could do more could than harm than good if our corporations are not able to compete or thrive with large profits, especially at a time of such instability in our economy.
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If changing the tax policy to generate more money for the U.S will push away Multinational Corporations out of the country, then how will Congress put an end to all U.S corporations tax revenues going overseas. It seems like congress has no control over the corporations and will not be able to make corporation pay a fair amount of taxes to the Treasury. What is your answer to this dilemma?
ReplyDeleteCorporations already pay their fair share of tax to the U.S treasury. Only in recent month the Obama adminstration is looking for anyway collect enough money to cover all of the spending in last year or so. Over taxing corporations, especialy during a recession, is not the answer and will only slow progress of bussiness and economic recovery. Most importantly imposing unfair tax rates on our corporations runs the risks of our corporations taking all of its operations overseas.
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