Community | May 04, 2009 | 3 comments

Obama Proposing Outlawing Tax Haven Rules That Save Companies $190 Billion

source: http://www.bloomberg.com/apps/news?pid=20601087&sid=a4.7CIfqd5h0&refer=home

Image
atomiclegion
President Barack Obama will propose today to outlaw three offshore tax-avoidance techniques U.S. companies such as Caterpillar Inc. and Procter & Gamble Co. want to use to save $190 billion over the next decade and make it riskier for Americans to stash money in tax-haven banks.

Obama and Treasury Secretary Timothy Geithner will target a strategy that allows U.S.-based multinational companies to effectively hide from the Internal Revenue Service the role their foreign subsidiaries play in shifting profits into low-tax jurisdictions such as the Cayman Islands, an administration official said.
  1. groups:
    Community,   News and Politics,   Politics
  2. tags:
    News,  News and Politics,  Politics,  Business,  3 more
  3.     
    |

3 comments // Obama Proposing Outlawing Tax Haven Rules That Save Companies $190 Billion

  • Stradius
    • 0
      Stradius  

    • This is about corporations forming entities outside of the United States borders so that they can hide revenue from the IRS. Essentially by sending their money off-shore they can "hide" it from tax calculations within the domestic borders.

      This off-shore money can then be used to invest and make money in foreign markets and even fund development of corporate operations on foreign soil... and yes send jobs overseas I suppose.

      While you and I pay 15-30% of our hard-earned revenue to the IRS, they are taking corporate profits and squirreling them off-shore so they don't have to "count" them when they report profits to the IRS.

      Sound like the Republicans are working hard for our country? The Republican Party hasn't been interested in what's right for the USA since Lincoln. It's always about what's right for big corp greed.

      I suppose at one time they could justify letting corps get fat and full... because if you let the corporations do well they should be able to stimulate the economy with "trickle down" affects to the hard-working people who spend the money to keep the economy hopping....

      But we all know that's bullshit. The trickle just gets gathered up and shipped to Bermuda or Aruba banks.

      It always makes me chuckle when i hear someone use the "Trickle Down Economics" or "Reaganomics" in conversation AS IF it did anything really good for the country.

      Cheers.
      Stradius

    • 3 years ago
  • Varex_Sythe
  • Stradius
more from Community:
from the community

top videos