Geithner the Tax Cheat Provides Plan to Cut Down on Tax “Cheats”…errrr Loop Holes…errrr Legal Tax Shelters
Oh the irony, I am seriously trying to laugh these days but it is becoming more difficult to do as these things that one would never think were possible are all coming to pass… If we want to root out the tax cheats why don’t we take a look and investigate Obama’s cabinet first?
President Obama announced Monday a plan to prevent U.S. companies using offshore banks to deferr tax payments, saying that the effort to “shelter” money creates an unfair advantage to U.S. companies and amounts to evasion.
There is a legitimate reason that corporations use tax shelters/tax havens and this has everything to do with the economic policies that have been implemented by government officials who have never worked in a corporation or taken business or economics classes. The United States is the only country that requires double taxation on profits. Not only do you have to pay taxes from overseas operations you also get taxed again if you bring those profits back to the States. Tax shelters have been legal for a very long time and for that very reason. The company can use that money to reinvest in their overseas operations without losing additional money from the double taxation policies.
The president also called for more transparency in bank accounts held by Americans in tax havens such as the Cayman Islands.
“The way to make American businesses competitive is not to let some citizens and businesses dodge their responsibility, while ordinary Americans pick up the slack. Unfortunately, that’s exactly what we’re doing,” Obama said.
There is no responsibility dodging which is the amusing part about this statement. Technically speaking, they are responsible by paying their international taxes. This is just another power grab and a way in which their administration can use another avenue to pay off the massive amount of debt will be incurring over the years.
“If financial institutions won’t cooperate with us, we will assume that they are sheltering money in tax havens and act accordingly,” he continued.
Sounds like the beginning of another witch hunt. I feel like we may see a resurrgence of McCarthyism but this time on the other side of the aisle against all of us nasty Capitalists!
Under the plan, companies would not be able to write off domestic expenses for generating profits abroad. The goal is to reduce the incentive for U.S. companies to base all or part of their operations in other countries.
The reason that companies go overseas in the first place has everything to do with taxes that are already in place in the United States. Our corporate tax rate is the second highest in the world after Japan. Most companies like to diversify and have other means of income and more leniency with tax policy. It also gives the company an opportunity to market their products and services abroad. Companies don’t keep all of their money overseas and in tax havens – some of it is brought back over to the Stats to reinvest in home operations but much of it is kept outside the border if they plan on reinvesting that money back into it’s overseas locations. Maybe if Democrats could put their ideology aside due to economic or outside situations, they could actually do what is best for the country ~ cut corporate tax rates to bring more investment from overseas into the United States – this would resolve much of the problems and would help create jobs.
The current law, Obama said, “says you should pay lower taxes if you create a job in Bangalore, India, than if you create one in Buffalo, New York. ”
Obama said that his plan would generate $210 billion in new taxes over 10 years and “make it easier” for companies to create jobs at home. Over a decade, $210 billion would make a modest dent in the federal deficit, expected to be $1.2 trillion in 2010.
Exactly, due to his ridiculous spend thrift policies, this is just a drop in the bucket and will wind up having more negative effects than positive.
He said the government also is hiring nearly 800 new tax agents “to detect and pursue American tax evaders abroad.”
Oh goody – more jobs that actually produce nothing but will cost those who do produce more money due to all the red tape just like Sarbanes-Oxley (SOX).
The U.S. Chamber of Commerce issued a statement saying that changing the provisions would hurt job prospects.
But why listen to the non-partisan group, the U.S. Chamber of Commerce, let’s just do whatever my socialist agenda tells me to…
This is a nightmare!
Don’t be surprised if the DOW remains up today – this is most likely those lovely limousine liberals on Wall Street who love to sucker regular people into fake rallies. Check out the trade volume before you get any ideas.
