President Obama has presented a set of proposals aimed at changing international tax policy, calling for the elimination of benefits for companies and wealthy individuals that “park” their cash in offshore accounts. The President and Treasury Secretary Geithner announced their plans on May 5th, which will require an overhaul in the tax code. It is projected to raise $210 billion in revenues over the next ten years.
One of the key proposed changes would restrict companies from deferring the payment of taxes on profits earned overseas. The plan also would keep firms from taking deductions against their taxes by inflating the amount of foreign taxes they paid. These plans are nothing new, since the President discussed his intentions during his presidential campaign. In a speech to Congress in February, as he outlined his priorities for the year, the President pledged to make the tax code more equitable by “finally ending the tax breaks for corporations that ship our jobs overseas.” I applaud the President for taking this badly-needed step toward making our tax structure more fair and equitable.
Source: New York Times
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