WASHINGTON (Reuters) - President Barack Obama will propose a "grand bargain for middle-class jobs" on Tuesday that would cut the U.S. corporate tax rate and use billions in revenues generated by a business tax overhaul to fund projects aimed at creating jobs.
There's something really weird about the economic message President Obama put forward today. He talked about how we've already had a lot of deficit reduction and we need to shift our focus to creating jobs and strengthening the middle class.
“Stop tax inversion by American corporations” is the latest war cry of American socialists. Obama is infuriated that U.S. corporations want to be American no more and is going to stop it.
Tax inversion is a method whereby a U.S. multinational company takes over a foreign company and creates a new corporate entity that the U.S. “tax inversion” uses to leave U.S. tax jurisdiction (the newly created company re-incorporates overseas). With a single takeover the U.S. corporation is no longer American — it might be British or Irish and subsequently pay a much lower rate of tax.
Tax reform is one of the few things in Washington these days on which Republicans and Democrats both agree is worth doing. Especially at this time of year, when taxpayers are struggling to file their tax returns, it’s not hard to get applause for promises to make the tax system fairer and simpler. Converting this widespread bipartisan desire into legislation, however, is another matter.
If you only studied President Obama's corporate tax proposal by reading news stories about it, you might be under a misimpression: that Obama proposed a business tax cut, and Republicans are too spiteful to take him up on it.
Last Week I received a response from reader Eric in response to the "U.S. Corporate Tax Dodge" by Barry Ritholtz. In his article Ritholtz sides with Fortune author Allan Sloan who wrote about Positively Un-American Tax Dodges.
President Barack Obama's administration on Wednesday unveiled plans to lower the top corporate tax rate to 28 percent and choke off lucrative loopholes, an election-year gambit testing Republicans' pro-business credo.Doubling down on his pledge to build an economy based on "fairness," Obama's lieutenants rolled out a plan that would lower the nominal business tax rate from 35 percent, but rake in more revenue by ending dozens of tax breaks and subsidies.
The U.S. government is driving some of its most productive citizens abroad. The only beneficiaries are countries such as Singapore and Switzerland, which offer sanctuary to Americans fleeing avaricious Uncle Sam.
Three years ago Eduardo Saverin, one of Facebook’s founders, joined 1,780 other Americans in renouncing their citizenship. Saverin’s case was particularly striking: Born in Brazil, he only gained U.S. citizenship in 1998. But heading overseas allowed him to reduce the federal government’s take when his company went public.
AP - A preliminary report by Congress' revenue scorekeeper suggests that it would be hard for Republicans to attain their goal of lowering the top corporate tax rate to 25 percent if they want to pay for it solely by eliminating business tax breaks.