Obama announces plan to close tax loopholes (Full Version)

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rulemylife -> Obama announces plan to close tax loopholes (5/4/2009 8:57:53 PM)

Obama announces plan to close tax loopholes
WASHINGTON – "President Barack Obama vowed Monday to "detect and pursue" American tax evaders and go after their offshore tax shelters.

In announcing a series of steps aimed at overhauling the U.S. tax code, Obama complained that existing law makes it possible to "pay lower taxes if you create a job in Bangalore, India, than if you create one in Buffalo, New York. "

The president said he wants to prevent U.S. companies from deferring tax payments by keeping profits in foreign countries rather than recording them at home and called for more transparency in bank accounts that Americans hold in notorious tax havens like the Cayman Islands..............................................................................................................

..............The White House said that in 2004, multinational corporations enjoyed an effective tax rate of 2.3 percent in the United States because of such allowances. Aides said that was the most recent year available for analysis. "




So much for the argument U.S. corporations are the highest taxed in the world.




caught -> RE: Obama announces plan to close tax loopholes (5/5/2009 4:02:16 PM)

Its worth considering the utility of these business-centric policies.  When you want people to finance your car industry, you green industry, or whatever, what will draw them to you to build? Hopefully this strikes a better balance...



CruelNUnsual -> RE: Obama announces plan to close tax loopholes (5/5/2009 11:39:30 PM)

Another Obama (or Rule) misdirection. The facts:

Effective tax rates of large US corporations:

Average 25.2%
Median  31.8%
Companies paying more than 50%: 25% of all companies.



ElectraGlide -> RE: Obama announces plan to close tax loopholes (5/5/2009 11:49:00 PM)

Sure Obama just make it so hard for a company to make money, that they will run the whole company out of the country and let other people work for them.



AlaskanHumanPet -> RE: Obama announces plan to close tax loopholes (5/6/2009 12:31:42 AM)

or the company will go out of business then, everybody except for the president looses thier jobs.



DarkSteven -> RE: Obama announces plan to close tax loopholes (5/6/2009 1:54:10 AM)

quote:

ORIGINAL: ElectraGlide

Sure Obama just make it so hard for a company to make money, that they will run the whole company out of the country and let other people work for them.


From the article:

"If companies leave the money overseas, where corporate tax rates in most countries are lower than in the U.S., they can avoid American taxes on those profits indefinitely. If the money is brought to the U.S., corporations can subtract foreign taxes already paid."

So if a US company operates a branch overseas with foreign labor, leaving the profits overseas and not paying US taxes, why is this better for us as a nation than simply letting a foreign company do the work?  I can't see any difference.



Louve00 -> RE: Obama announces plan to close tax loopholes (5/6/2009 4:08:48 AM)

Thats what I was wondering.   If the companies are leaving are reporting their profits and leaving them in the other countries, never to bring them to the US...then what difference what their tax rate is?  They're evading their taxes.  (unless I'm reading this wrong)



rulemylife -> RE: Obama announces plan to close tax loopholes (5/6/2009 6:23:50 AM)

quote:

ORIGINAL: CruelNUnsual

Another Obama (or Rule) misdirection. The facts:

Effective tax rates of large US corporations:

Average 25.2%
Median  31.8%
Companies paying more than 50%: 25% of all companies.


I see.

Did you actually read the whole article?

Incidentally, if you're going to throw out facts and figures it might be nice to document where you got them from.

While I'm sure you're a very trustworthy guy, It would be nice to see some sort of proof.



OrionTheWolf -> RE: Obama announces plan to close tax loopholes (5/6/2009 7:27:18 AM)

Yeah I am not sure where those figures come from either, unless they are rolling in the payroll tax contribution portions and such.

From the article:

" The U.S. has a top corporate income tax rate of 35 percent, which is among the highest in the developed world. However, most corporate income is taxed at much lower rates because of deductions and credits.
In 2004, large corporations paid an average effective tax rate of 25.2 percent on domestic income, according to a Government Accountability Office report last year. For foreign income, the effective U.S. tax rate was about 4 percent, the report said. That figure does not include taxes paid to foreign countries. "

Contention by businesses is that if they pay more taxes, then they become less competitive. This is an actual concern, regardless of what the emotional response is. I agree with those that state companies that are actually evading taxes should be pursued with vigor, but those that are legally using the current code are not breaking the law. Even Democrats in Congress state they are opposed to increasing the taxes on corporations if it will have negative effects upon those companies growing.

It definately needs more study and looking into, before anything is done. If companies are moving to reduce their overhead of taxes, then wouldn't rasing taxes be the opposite of what is needed to keep companies here? This is what Rangel tried in 2007, which I supported. It increases taxes if they are made abroad but lowers taxes in income domestically. This makes it more attractive to have the company here in the US.

" Rep. Charles Rangel, chairman of the tax-writing House Ways and Means Committee, proposed a similar measure to limit the deductions of U.S. multinationals in 2007. But Rangel, a Democrat from New York, tied his proposal to lowering the overall corporate tax rate. "



UglyTruth -> RE: Obama announces plan to close tax loopholes (5/6/2009 8:36:56 AM)

Is that Rangel the actual law breaking tax cheat going after the law abiding "tax cheats"?



CruelNUnsual -> RE: Obama announces plan to close tax loopholes (5/6/2009 8:43:54 AM)

I was responding to your conflating taxes paid on foreign income with a claim that disproves that US coroporations are overtaxed, not the article, which is quite simply a lie.

Source: the GAO.



CruelNUnsual -> RE: Obama announces plan to close tax loopholes (5/6/2009 8:45:57 AM)

The difference is that the compensation of US expats for their foreign income is still subject to US taxes and the dividends/capital gains on the stocks of multinationals are still taxed in the US in full. Thats how it benefits the US.



CruelNUnsual -> RE: Obama announces plan to close tax loopholes (5/6/2009 8:48:08 AM)

No, they arent "evading" their taxes (unless they are lying on their tax forms in multiple countries). They are paying taxes in the jurisdiction where they are making the profits, and residual taxes in the US.



OrionTheWolf -> RE: Obama announces plan to close tax loopholes (5/6/2009 9:08:56 AM)

Try reading the story. Regardless of what he has done, a reform that increases taxes made abroad but decreases those that create domestic jobs, is what needs to be done.


quote:

ORIGINAL: UglyTruth

Is that Rangel the actual law breaking tax cheat going after the law abiding "tax cheats"?



CruelNUnsual -> RE: Obama announces plan to close tax loopholes (5/6/2009 9:11:47 AM)

quote:

ORIGINAL: OrionTheWolf

Try reading the story. Regardless of what he has done, a reform that increases taxes made abroad but decreases those that create domestic jobs, is what needs to be done.




Except that isnt what he will do. He will simply drive businessess overseas taking away all benefits to the US.



rulemylife -> RE: Obama announces plan to close tax loopholes (5/6/2009 10:50:25 AM)

quote:

ORIGINAL: OrionTheWolf

Yeah I am not sure where those figures come from either, unless they are rolling in the payroll tax contribution portions and such.

From the article:

" The U.S. has a top corporate income tax rate of 35 percent, which is among the highest in the developed world. However, most corporate income is taxed at much lower rates because of deductions and credits.
In 2004, large corporations paid an average effective tax rate of 25.2 percent on domestic income, according to a Government Accountability Office report last year. For foreign income, the effective U.S. tax rate was about 4 percent, the report said. That figure does not include taxes paid to foreign countries. "

Contention by businesses is that if they pay more taxes, then they become less competitive. This is an actual concern, regardless of what the emotional response is. I agree with those that state companies that are actually evading taxes should be pursued with vigor, but those that are legally using the current code are not breaking the law. Even Democrats in Congress state they are opposed to increasing the taxes on corporations if it will have negative effects upon those companies growing.

It definately needs more study and looking into, before anything is done. If companies are moving to reduce their overhead of taxes, then wouldn't rasing taxes be the opposite of what is needed to keep companies here? This is what Rangel tried in 2007, which I supported. It increases taxes if they are made abroad but lowers taxes in income domestically. This makes it more attractive to have the company here in the US.

" Rep. Charles Rangel, chairman of the tax-writing House Ways and Means Committee, proposed a similar measure to limit the deductions of U.S. multinationals in 2007. But Rangel, a Democrat from New York, tied his proposal to lowering the overall corporate tax rate. "




You know, I was getting a little confused about some of the comments here.

Then I clicked on my original link and found a completely different article from the one I posted.

The original article had the same title as the thread, while if you click the link now it is an entirely different article with a different headline and different author.

There was no mention of GAO statistics or Rangel in the initial story, and the 2.3% rate I highlighted was missing from the subsequent article.

Remind me to quit posting AP links.

Here's the original:

Obama announces plan to close tax loopholes | www.azstarnet.com ®



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