Obama Cracking Down On Tax Havens

[HuskyCaucasian]

Obama Cracking Down On Tax Havens

President Barack Obama plans changes to tax policy certain to be unpopular with corporations with international divisions and individuals who use tax havens.

 

Obama's two-part plan, which he is slated to unveil at the White House on Monday, also calls for 800 new federal tax agents to enforce the system.

 

The president's proposal would eliminate some tax deductions for companies that earn profits in countries with low tax rates, as well as consider U.S. citizens who use tax havens in the Bahamas or Cayman Islands guilty of violating U.S. tax laws. If Obama wins congressional approval for the changes _ and he faces a challenge on Capitol Hill _ it could deliver $210 billion in tax revenue over the next decade.

 

Treasury Secretary Timothy Geithner was to join Obama for the 11 a.m. comments.

 

Officials described the administration's plan ahead of the announcement on the condition of anonymity so they wouldn't upstage the president's remarks. However, they acknowledged the political challenges facing the plan. The administration won't seek a complete repeal of overseas tax benefits and, although the rule changes are narrower than some anticipated, business leaders still oppose them as a tax hike. Obama aides countered that the plan is a step toward a massive overhaul of international financial regulations the president has promised.

[NorthSideSox72]

I mentioned this in the Economy thread, but, I suppose a new thread will do.

 

[HuskyCaucasian]

I mentioned this in the Economy thread, but, I suppose a new thread will do.

oops. my bad.

[StrangeSox]

My father works for the IRS, and they just had a few seminars on this stuff.

[kapkomet]

Yea, I'll chime in on this later because I spent the last two years dealing with it.

[HuskyCaucasian]

Live Video of the Announcement

[southsider2k5]

More reasons for companies to leave the US, great timing.

[HuskyCaucasian]

More reasons for companies to leave the US, great timing.

I'd find a way to put a tariff on imported goods made by companies that leave the US. Find a way to lock them in.

 

I'm probably in the minority that I believe in "America First". We should be a self sustaining country and not have to rely on goods brought in from over seas. Or at lease as self-sustaining as possible.

[kapkomet]

I'd find a way to put a tariff on imported goods made by companies that leave the US. Find a way to lock them in.

 

I'm probably in the minority that I believe in "America First". We should be a self sustaining country and not have to rely on goods brought in from over seas. Or at lease as self-sustaining as possible.

Really? Do you go to any major retailer? Do you like the prices you're paying? Would you pay 25-50% more for every single thing you buy without a corresponding increase in wages?

 

And, SS alluded to this - this will absolutely result in major companies relocating offshore. I'll go into detail later (and this won't be the M2M detail... )

[ChiSox_Sonix]

I'd find a way to put a tariff on imported goods made by companies that leave the US. Find a way to lock them in.

 

I'm probably in the minority that I believe in "America First". We should be a self sustaining country and not have to rely on goods brought in from over seas. Or at lease as self-sustaining as possible.

 

I completely agree, but it's not really realistic.

 

[Balta1701]

On this one, I'll believe it when I see it.

[kapkomet]

On this one, I'll believe it when I see it.

So, corporations are evil, right?

 

[Balta1701]

So, corporations are evil, right?

LOL.

 

What I mean is this happens every few years, every administration, hell in every state for that matter. New administration comes in, promises it's finally going to be the one cracking down on tax cheats, finding corruption, coming up with this wonderful new source of revenue that every previous administration ignored. Either because their math is wrong or because the lobbyists are just better than they are, it never happens.

[southsider2k5]

On this one, I'll believe it when I see it.

 

I totally agree with this... It won't be long until there are new loopholes getting put in. The elelected officials realize that this sounds good, but in reality, they can't lose these companies out of their districts.

[bmags]

agree with consensus. The one thing that bothers me isn't businesses acting out of self-interest, it just bothers me morally some of the countries they go to and their track records with human rights. Not enough for me to villify them for leaving, but just an, it's f***ed to give those countries business.

[mr_genius]

I'm probably in the minority that I believe in "America First". We should be a self sustaining country and not have to rely on goods brought in from over seas. Or at lease as self-sustaining as possible.

 

I agree.

[HuskyCaucasian]

I agree.

My belief, is that in a "America First" economy, trickle down economics really CAN work because you have people to pay. The problem with the economy as it stands, we pay for goods, the money goes to the company, they send that money to cheap labor overseas. It's a broken system. If we can keep jobs HERE, we all thrive. Money gets into an internal loop.

[Cknolls]

More reasons for companies to leave the US, great timing.

 

 

Like Weatherford.

[NorthSideSox72]

My belief, is that in a "America First" economy, trickle down economics really CAN work because you have people to pay. The problem with the economy as it stands, we pay for goods, the money goes to the company, they send that money to cheap labor overseas. It's a broken system. If we can keep jobs HERE, we all thrive. Money gets into an internal loop.

You are a self-proclaimed social conservative, and you support the idea of trickle-down economics. That would pretty clearly make you a Republican. How did you end up being an Obamaton?

 

[Balta1701]

My belief, is that in a "America First" economy, trickle down economics really CAN work because you have people to pay. The problem with the economy as it stands, we pay for goods, the money goes to the company, they send that money to cheap labor overseas. It's a broken system. If we can keep jobs HERE, we all thrive. Money gets into an internal loop.

In a real working global system, there is absolutely nothing wrong with that. How things should happen is that items are manufactured where they're cheapest; where they can be shipped cheaply to market and the raw materials can be had the cheapest. That's how an ideal globalized economy should work...if an area has an exceptional amount of some resource, or is particularly well educated in a certain field, etc., then it can and should become the strongest in that field.

 

The problem I have with globalization is that the key winds up being distortion in laws right now...that's what winds up making it a bad deal for so many. Things are manufactured in China not because China has enormous resources of oil and iron to provide the raw materials, it's manufactured there because it is far easier to exploit the workers and the environment...they can get a lot more out of the workers for a limited cost...and the governments are lobbied heavily to not make rules that would make things more equitable...so instead of businesses moving somewhere because the resources they need are cheaper, they move somewhere because they can write the laws easier somewhere.

[mr_genius]

How did you end up being an Obamaton?

 

I believe the correct term is 'Obamatron'

 

 

[HuskyCaucasian]

You are a self-proclaimed social conservative, and you support the idea of trickle-down economics. That would pretty clearly make you a Republican. How did you end up being an Obamaton?

I dont necessary support trickle-down... in fact, i tend to think it doesnt work because of corporate greed. I am saying that under ideal conditions, it CAN work, but not right now because of how our economy is structured with overseas jobs and outsourcing.

[NorthSideSox72]

I dont necessary support trickle-down... in fact, i tend to think it doesnt work because of corporate greed. I am saying that under ideal conditions, it CAN work, but not right now because of how our economy is structured with overseas jobs and outsourcing.

I am not sure you understand the concept of trickle-down economics. The idea is that tax cuts for the wealthy will put more money into the economy, which helps all income brackets. I'm not sure how you are making the stretch from there to overseas jobs.

 

[HuskyCaucasian]

I am not sure you understand the concept of trickle-down economics. The idea is that tax cuts for the wealthy will put more money into the economy, which helps all income brackets. I'm not sure how you are making the stretch from there to overseas jobs.

The idea,as I understood it, is to cut taxes on the rich, allow them to spend more money within their company, which then trickles down to jobs for the lower brackets. Am I miss understanding this?

 

If my understanding is correct, then when you start outsourcing and shipping jobs overseas, you are now longer trickles down jobs to lower brackets int he US. And then the system is broke.

 

Am I making sense.

[NorthSideSox72]

I for one think that the idea of US companies fleeing overseas due to taking away some tax shelters is vastly overblown. We aren't talking about picking up a business and moving it from Chicago to Des Moines (which is hard enough for large companies, and rare even then). You are going to take a US company, owned and managed by US people, and move it to another country entirely? That will be incredibly rare. The only area I see that having significant impact is where foreign companies set up US legal entities, and they may move some of those operations out, potentially. But in those cases, they'd probably take the much easier route of sending profits back home.

 

I just don't see it as a big risk.

 

Dealing with taxes like this on a local or state level, of course, is a whole different ballgame.