Obama Tax Haven Plan Faces Opposition From Democrats

Bloomberg :

President Barack Obama's plan to end tax breaks for U.S.-based multinational companies drew a skeptical response from fellow Democrats on Capitol Hill, indicating that his plan may face obstacles on its path through Congress.

Senate Finance Committee Chairman Max Baucus, a Montana Democrat, called for "further study" of Obama's proposals within minutes of the president's announcement yesterday. Representative Joseph Crowley, a Democrat on the tax-writing House Ways and Means Committee, said he's wary because the tax changes would hurt Citigroup Inc., his New York district's largest private-sector employer.

Read the whole story: Bloomberg

Comments

[pueblocolorado]

Any Democrats in Congress that oppose this much needed revision have been bought.

[sunilpatel]

Oh Brother ..........Obama

In a prevoius blog I had stated that the President had a tendency to use wrong / trivia references (eg nancy Reagan etc ..does anyone read these blogs? The refence to bangalore is all wrong. Bangalore has IT jobs in companies created by Indians as well as US firms. For the last ten years or more software exports from India were taxed at er... 0%. So where were the US firms getting tax incentives form the US or India? Also a lot of the software was IP so the it is like the USA is building a a long term asset and not replacing a job

[Tyler-Durden]

democrats DO NOT REPRESENT THE PEOPLE! this is a myth that they propagate. DEMOCRATS REPRESENT THE ELITE, just in a different way. they increase spending programs so they have more cookie jars to stick their hands in.

the REPUBS REPRESENT THE ELITE as well, just in a different way. They give the money straight to themselves in the form of tax cuts! It's that simple!

when i see regular people taking govt. office ONLY THEN will i see the working class being represented properly. STOP ELECTING GREEDY RICH PEOPLE!

[cuchulain]

Don't kid yourself on the spending thing. It's a myth. Republican administrations from at least Reagan on have increased spending at a higher rate than Dems. They're especially fond of spending obscene amounts on defense. When Obama said he would only increase defense spending by 4% (again, increase it), Republicans went ballistic. To them, that was the end of Western Civilization.

And while both parties have become good at increasing the cost of government through privatization, the Republicans are especially passionate regarding this and masterful. Bush set new records. It fits with their ideology to a T.

Which means tax payers pay MORE for the same services they once got via public institutions and employees, with almost no oversight. The best examples are Blackwater and KBR in Iraq. Our own military used to handle logistics, security, laundry, food, etc. etc. That's been outsourced. The tax payer pays ten times (or more) for the same exact thing. The same model is used throughout the government. It amounts to corporate welfare and it's on our dime. Republicans have perfected the art of transferring public wealth into private (select) hands.

The answer is to put more progressives into power and defeat anyone who represents the Money Party. Replace them with those who represent the people.

[Tyler-Durden]

I AGREE WHOLEHEARTEDLY

[Osusuki]

You know, we've been electing these so-called democrats for nearly a decade based on the hope that, if they ever got back in the majority, they would do something about the way the grand ol' party of Satan has trashed America. For nearly a decade, we haven't see boo out of these clowns, and I for one think it's about time they lost the benefit of the doubt. I don't care if a bozo is a registered democrat, republican, libertarian, green, whig, or bozo; he or she is still a bozo. Still someone the American people don't need in Washington. Still a bought and paid for enemy of the middle class. Still someone who needs to be sent home.

[cuchulain]

Some apologists for corporate welfare have said if their taxes go up, they'll ship jobs overseas and/or raise their prices.

Think about it. Cheney/Bush managed to give outright subsidies to Exxon, even after it had set records for the highest profit in world history, and they RAISED their prices at the pump. The prices skyrocketed. Taxes have been reduced, and reduced, and reduced for the wealthy and for Big Businesses, and they STILL ship jobs overseas. America has been losing industry after industry, DESPITE sweetheart deals for Big Business.

And, pleeeeze. Stop with the 35% corporate tax rate nonsense. If you claim that American corporations pay anywhere NEAR that much, you deserve nothing but mockery and scorn. In reality, MOST American corporations pay NO taxes, after all of their deductions, subsidies, loopholes and various writeoffs. 90% of them pay less than 5%. Yes, small businesses do pay taxes. Which is why, if you're concerned about THEM, you should WANT Big Business to pay their fair share. If Big Business paid their fair share, then small businesses could pay less. We ALL could pay less.

It's actually quite astonishing that even one middle class person in America defends the current tax system, which makes it all too easy for the wealthy and Big Business to skate on their taxes. It's absolutely astonishing. Mostly because it's in your best interest for them to pay more, so you can pay less, so your kids and their kids can pay less.

[rf-hawaii]

Yes, the Republicans have been gutting America for a long time. And they'd like to continue. They're interested in driving her right into the ground.

Their tactics are completely unsustainable, but they're too stupid to see it. Or perhaps to care.

[Easyrollins]

Let's get this straight, you lobby congress to put in loopholes so you can dodge paying taxes, and then you still dodge any other taxes you might be assess. When you caught and are required to pay your taxes, by your logic it's a tax increase? You steal and to are told to pay and you say it a hardship? you pay executive bonuses, fly in corporate jets, pay your workers as little as possible and now you claim hardship. you fight the minimum wage each time it come before congress, you fight every environmental measure the people want , You take a eight year tax break, and now you are crying because we ask you to pay your fair share!!!

[DuganS1]

Most of this has nothing to do with "dodging taxes." Corporations are paying taxes for most this money already in the country they do business in. Now they will be double taxed even if they don't repatriate the money back into the United States. This tax increase will make companies less competitive and force them to cut costs to compensate for the higher tax, which means they'll probably cut some jobs in the US and even delay or cancel expansion plans which will hurt the economy.

[Easyrollins]

If you are doing business in country, you're suppose to pay taxes there, and pay taxes here , Where in the hell does Double taxes come in? You taking a profit, i.e. money from that countries people, you pay taxes , and the same goes here you make a profit here and you pay taxes for the right to do business here. Your logic is wanting! What the Tax codes states is that you can't have it both ways, make a profit in a country in one country and take a tax break for doing so.

[cuchulain]

Nonsense. Most American corporations pay no tax. Zero. Nada. The GAO reported that recently. Multinationals are the biggest offenders. How do they get away with that? By actually deducting expenses for foreign operations inside tax havens. They're not being taxed twice. They're avoiding ANY tax.

And who makes up the difference? We do. We all do. If corporations and the wealthy paid their fair share, our tax burden could be reduced. If corporations and the wealthy paid their fair share, we wouldn't have an eleven trillion dollar debt.

Are you against the huge debt? Then you can not possibly want taxes to be lower than they already are for corporations and the wealthy. Their taxes keep getting lower and lower, year after year, while our debt climbs.

And what do we have to show for it? Stagnant wages for the working poor and the middle class since 1973. Crushing job losses. Outsourcing on overdrive. What do the wealthy have to show for it? A huge increase in their wealth. A huge increase in the gap between the rich and the poor, and between the rich and the middle.

And you defend that?

[futate01]

Don't lie.

They only have to pay the difference. Foreign countries lowered their taxes to attract US companies. The new law states that since the us tax is roughly 30 percent, if in the other country you are only paying 10, then you owe the US 20. As it is now these companies pay 10 in the country they settled and a big fat 0 in the US.

[mama4obama]

The ability to ride these corporate tax loopholes are the same as the bail out companies giving bonuses and then saying we taxpayers should not be mad about it. These companies do not pay their FAIR share of taxes and I am SICK of it. i demanded change when I voted for Democrats and I will work to defeat the dems that continue to side with corporations over us. Time to put up or shut up. If I wanted Republicans I would have voted for them.

[Easyrollins]

Do you honestly think for one moment, that any of these company are going to risk there company playing the extortion game and let it be known by the American public, NO!!, Just like we see all these responsible companies suddenly being so environmentally conscious now to gather public approval you will see companies suddenly become good citizens and not put profit over their corporate responsibility to the American people.

[Easyrollins]

Where is it written that we must use the goods or services of a company that raises it's prices because they don't feel their profit are high enough, If you don't buy they're goods or services, another company will magically appear to fill the void, to get that market share.

[Easyrollins]

Sending jobs over seas has everything to do with this, especially if you get a tax break for doing it!!, If you don't know go find out!

[Easyrollins]

Make them pay taxes and they will leave and take the jobs with them, Is that the biggest load of crock I've ever heard, where they going and when they get there you think we going to purchase their goods or services and they are extorting us with our jobs that feed our families. and when they leave and get all settle in their new countries and they get tax there, are they going to leave. when they no longer have access to the American markets most will wither and die and they know it. The power has always been in the peoples hands they know it , they just don't want you to know it. There are few government like this one, on this planet, most will love to get a giant corporation in their country, But the price for doing business will be much higher than is here are they would have already left for the greener pastures, and greater profit.

[DuganS1]

The companies this tax increase will affect the most make 50-80% of their profits outside the United States. This is the money that the US government wants to double tax.

[J-Rome]

Assuming you listened to the POTUS' international tax policy proposal, I would suggest you listen to it again because you analysis is incorrect. If American corporations are, as the POTUS announced, reducing their taxable income by taking deductions on their expenses while paying no taxes in the U.S. at all and banking their profits in tax haven sites in many parts of the world, they are engaging in tax evasion. Tax evasion in this country is illegal.

The gist of the POTUS' international tax policy proposal is to encourage American corporations to create domestic jobs - which is why he noted companies that create jobs in the U.S. will receive a tax cut on domestic profit.

[LenoraNC]

I've not seen anything they've helped with other than the stim package. The Senate Dem's are doing whatever the Rep's tell them to. Harry Reid & his buddies call a recess and they are out of session more than they're in because they refuse to keep the Rep's on the Senate floor and let the media constantly report what legislation the Rep's are holding up. I'm already fed up with it!
The cowards in Congress are telling us we have such a horrible prison system in this country that we're not safe from prison escapees, that our military prisons & super max prisons who hold the worst of the worst including convicted terrorists (i.e. Ramsey Usef & his cell of terrorist) are not secure prisons. How many times has Ramsey Usef escaped because I sure haven't heard about it? This is a direct slap in the face to our military, law enforcement, prison guards & the American people. Our cowardess Congress voted down President Obama's request for $80 million to close Gitmo this week, transfer the remaining detainees to U.S. Military Prisons to await trail...OUR Representatives said to the WORLD, we're scared of 100 terrorist and they're so mighty that our prisons can't hold them and we can't protect our people!
PLEASE! It's embarrassing. My God, if Bin Laden is captured and brought here like he should be for trial the entire Congress will run and hide in Cheney's under ground bunker. That would actually be good!

[Easyrollins]

What does having the second highest corporate tax have to do with it? we are one of the world economic power, Without this country consumers most of the corporation could not exist! The corporate tax rate 3%, And they try to dodge it. all in the name of profit, which does not trickle down to us, what do they do, send our jobs overseas and take a tax break for doing it.

[DuganS1]

"Sending jobs overseas" has little to nothing to do with this.

[cuchulain]

Actually, Dugan, it has everything to do with it. It proves that low taxes have nothing to do with creating jobs in America. Corporations outsource anyway. Why? Because they can pay pennies on the dollar overseas and avoid even our very minimal regulations.

That's worth more to businesses than tax breaks. Tax breaks are just icing on the cake. They take those AND outsource anyway.

Do the math. If we cut corporate tax rates to zero, they would still make higher profits by moving jobs overseas. They have a very strong incentive to do that when they can pay just pennies on the dollar.

We need to create jobs here. We can do that by targeted government spending on infrastructure, green energy and technology, transportation, education, hospitals, health care, etc. We can guarantee job creation here if we spend wisely. Just giving tax cuts, with no strings attached, guarantees nothing.

[Daniboy]

Tell all those stockholder to pay their fair share-maybe your parent or neighbor-you as a good Lib probly own no stock! Gave it all to PETA or ACLU!

[brynnrose thorn]

Your imagination is very highly developed. You should write novels, bodice-rippers seem right up your alley.

[Daniboy]

Finally-Dems who were not former community organizers-have an understanding of the business world! Thank the Lord-I didn't say Messiah!!