Obama To Tax US Companies Foreign Earnings/Holdings Over Seas.

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Obama To Tax US Companies Foreign Earnings Over Seas.

New tax on US companies foreign over seas earnings. A 19% one time tax.

http://www.marketwatch.com/story/obama-to-propose-tax-on-firms-foreign-earnings-2015-02-01-121031727

Normally I'm against taxes but since it's foreign earnings that probably get sheltered abroad and don't get reinvested here I could handle this. And it's supposed to be a one time tax.

Money to be used for US infrastructure-this is where it gets messed up. Will it be needed infrastructure or a make work project. The 2008/2009 reinvestment act wound up remodeling bus and train stops around here among other things
 

Our infrastructure is in dire need of help! Water Lines, Highways, Bridges etc all are old and in some cases dangerous. I am fully supportive of the proposal.
 
Rebuilding our aging Infrastructure should be one of the governments Highest Priorities. At least we would see something for our tax dollars, and it would put 10's of thousands of people back to work in good paying jobs.
 
So instead of using taxes to always try to get things done, why not put the unemployed to work on these "Hero" projects (sly reference to Soviet work projects)?

I'm all for taxing companies that hide their profits overseas, but it shouldn't be a one-time thing - it should be quarterly, as it is for every other U.S. company. They should be penalized, or at least taken to account, for helping to ruin our economy.
 
These companies are not dumb. This just sounds like a good idea.
We have a bridge here that is falling apart, we vote for the funds to fix it.
The money gets spent elsewhere.
 
:what1:
Do any of you really believe this money will be used that way?
I am very skeptical myself. Just more taxes.
I have not seen any tax that really accomplished what it was supposed to accomplish.
 
If Obama pulls this off I hope our government, and all of the governments the world over, start taxing foreign companies on their turnover on local soil because they structure their finances in such a way as to make miniscule profit. Where the profit finally gets recorded is somewhere that charges no tax at all.

It is only fair that tax is paid where the profit is really made, otherwise these companies are just parasites.
 
Obama Seeks Tax Changes for U.S. Firms Overseas
Source: Reuters

Obama seeks tax changes for U.S. firms overseas
Mon May 4, 2009 6:06am EDT

By Kim Dixon and Caren Bohan

WASHINGTON (Reuters) - President Barack Obama on Monday will propose changing provisions in the tax code that he says encourage U.S. companies to move jobs overseas, as part of a broader package aimed at saving $210 billion over 10 years.

U.S. officials said that in an announcement planned for 11:05 EDT (1505 GMT), Obama will seek to follow through on a campaign promise to change the tax treatment of American firms with overseas operations. That portion of his plan --opposed by such firms as Pfizer Inc and Oracle Corp -- would raise more than $100 billion in revenue over the next decade.

In an echo of a line he used often on the campaign trail last year, Obama vowed in a February address to the U.S. Congress to make the tax code more fair by "finally ending the tax breaks for corporations that ship our jobs overseas."

Currently, U.S. firms are allowed to defer paying taxes on profits earned overseas if they plow those profits back into their foreign subsidiaries. Critics say those rules encourage businesses to bolster their foreign operations instead of creating jobs at home. But an array of firms signed onto a letter to congressional leaders in March opposing changes to the so-called deferral provision, saying they would make U.S. businesses less competitive. The letter was signed by 200 companies and trade associations, including Pfizer, Oracle, Microsoft Corp Johnson & Johnson and General Electric Co as well as the Business Roundtable and the U.S. Chamber of Commerce.

Read more: http://www.reuters.com/article/marketsNews/idUSN0334332...



here is another article...

http://money.cnn.com/2009/05/04/news/economy/obama_corporate_tax_proposals/

I didn't look it up but I'm sure Republicans rejected it.
 
Davey Jones said:
Why didn't Obama do this when the Democrats were in control???
Click to expand...

He was dealing with a once in three generations economic crisis when he entered office left to him by the Bush administration, he still had aspirations that if he met them half way, the Republicans might be willing to do something constructive. Now the economy is much healthier and he no longer gives a damn what the Republicans think. What this budget is doing is stating an agenda for 2016
 
How is the US so much better now than it was when he entered the Presidential office. Bush would have left with mid $7 trillion debt showing, but for his last two years Pelosi and Reid got control of the Congress House and Senate and got the debt up to over $10 trillion before the election of Obama. Now Obama has increased this debt to over $18 trillion debt and climbing rapidly. Right now the economy is not greatly better. Some areas are still failing and others have had a rise and now a fall. I don't know who is going to pay the great debt created by Obama as his latest budget just adds another $4 trillion of debt to the US. Two years and Obama will be gone. I hope whomever gets the job, Democrat or Republican or independent, will bring enough knowledge of the problems being created and do something to control our debt and start reducing it.
 
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I would think also that Obama should make sure our US taxes can also be taken from all making good incomes from their products. One very large producer of many products in the US was reported to not having to pay taxes at all in recent years. Sure sounds like a very good place to start closing our debts and getting some money into the reserve status once again. I would think a lot of the US money problems could be fixed right here and no reason to start taxing money made in other countries first.

I just looked and found that GE did pay some taxes. Something about 2% over 10 years. This would bring several billion dollars into the government. Also wonder how many other companies have gotten away with practically no taxes for years. Why attack just the ones that make money in other countries. Plenty right here at home to help a lot.

http://ctj.org/taxjusticedigest/archive/2012/02/press_release_general_electric.php#.VNAvsi6rFcs
 
Deficit under Obama cut by 2/3, full article here...http://www.politicususa.com/2015/02/02/obama-drops-truth-bomb-gop-since-office-cut-deficit-23.html


"Congressional Republicans continue to pretend like the country is mired in deficit and can’t afford to spend. The reality is that the Republican-backed cuts would do more to strangle economic growth than to launch an economic boom. Obama isn’t calling for a massive spending program. His budget is advocating a complete reversal of the sequester cuts.

For Republicans, the budget isn’t about fiscal policy and economics. To conservatives, the budget is an ideological statement. It doesn’t matter to them what the country or the economy needs. They are beholden to an ideology of dismantling the federal government. The Republicans cries of, “we can’t afford it” have everything to do with an ideological agenda that has a proven history of economic destruction.

​
It is good to see this president taking credit for what his occurred during his presidency. It is even more important that he pushes back every single day against Republican myths. The president gets it, and he is going to fight back against the baseless claims of his critics with the facts."
 
The FIRST thing that needs to happen to restore fiscal sanity to this nation is a Complete Revamp of our Tax Codes. Presently, the codes are about 75,000 pages...99% of which are exemptions for virtually every special interest imaginable. A sensible and fair code could probably be written on a few dozen pages. An income of X dollars should require a payment of Y amount of tax...Period! That, in itself, would probably reduce the amount of tax most people have to pay, while bringing in huge amounts of revenue that currently escapes.

If things continue the way they are going, the day will come when the US devalues its currency so as to reduce the hundreds of billions being thrown away just paying the Interest on the National Debt. THAT will screw every low and middle income person in the nation when any savings they may have are reduced, while prices are increased accordingly to compensate for a lower value currency. This is precisely what has happened in other nations who let their finances go to pot...most recently Argentina. Another option, which will also screw the working classes would be a European style VAT (value added tax)....and I'm sure that has been discussed behind closed doors in Washington.
 
Doesn't really matter. The consumer will pay in the end. No company takes on more debt without the consumer sharing in it. The President can tax any U.S. company overseas all he wants, the costs will be added to the final price. Big companies must maintain shareholder equity (value), or the CEO will face termination. Shareholders do not take it lightly when their return drops from 12% to even 8%. I have no proof of this because I have not researched any internet sites, but I do remember hearing on a news channel that more U.S. companies were returning home. Maybe they have already received the message.

BTW, I am in favor of this move by the President, even if I have to pay a little more for items. Here in PA, the last Governor, Tom Corbett, raised gas taxes here in PA over a three-year period that will make PA the second highest gas taxed state in the U.S. behind California. As the tax takes effect, a small increase every early January, the price at the pump goes up. That's the way it works. Companies pay more, then so does the consumer. The tax money is used to pay for our dying infrastructure and yes, I can see the roads and bridges being repaired, replaced and built. Hiring is taking place, so it is working the way it is supposed to. I am good with it, but when or if gas prices spike up, then we will complain. It's human nature.
 

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