OBAMA TO GO AFTER CORPORATE OFFSHORE TAX HAVENS

In what will be a test of his ability to stave off powerful lobbies, President Obama will go after offshore tax havens used by corporations.  Originally established to ease a double tax burden for companies that set up operations overseas, the tax laws have provided havens for corporate avoidance of their fair share.

The top corporate tax rate is 35 percent, but the U.S. Treasury Department estimated that in 2004, the most recent year for which data is available, American multinationals paid $16 billion in taxes on $700 billion in foreign income — an effective rate of 2.3 percent.  Oh, snap – I can just hear the whining of the corporations about how much they pay in taxes.

Of course, the corporations have the right to set up business anywhere they believe they can exploit the local economy and environment.  That isn’t going to change, but if that is what they want to do, then there is a price to pay.

The proposals would especially hit pharmaceutical, technology, financial and consumer goods companies — among them Goldman Sachs, Microsoft, Pfizer, and Gamble Company – that have major overseas operations or subsidiaries in tax havens like the Cayman Islands.

Here is my take – too bad.  Move your company business overseas, taking American jobs, and you deserve to pay double taxes.  I am sure the lobbying efforts of the corporations; however, will result in tempering President Obama’s efforts to plug the tax haven loophole.

Map of tax havens

Image credit:  Google Images and Transnationale.org

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About Charlotte A. Weybright

I own a home in the historical West Central Neighborhood of Fort Wayne, Indiana. I have four grown sons and nine grandchildren - four grandsons and five granddaughters. I love to work on my home, and I enjoy crafts of all types. But, most of all, I enjoy being involved in political and community issues.
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12 Responses to OBAMA TO GO AFTER CORPORATE OFFSHORE TAX HAVENS

  1. Afghanistan is a tax haven?

  2. Robert:

    Here is the website:

    http://www.transnationale.org/epays_pfbj.php

    Perhaps because we see Afghanistan as a war-torn and poor country, it is hard to imagine that there would be any benefits to locating a company there.

  3. Iceironman says:

    He should concentrate on his cabinet and senate members who dont pay taxes.

    Corportations dont pay taxes, we do. Just listen to Obama energy plan on tax and trade.

  4. Ice:

    You are incorrect – corporations do pay taxes. That is one of the downsides to incorporating in exchange for limited liability.

    The corporate entity has a legal existence of its own and pays taxes. The shareholders also pay taxes on the dividends they receive.

  5. Norma says:

    Here’s my thought. If you drive business out of the country with environmental regulations, union demands, and high taxes, they take their jobs with them. That’s how it worked 30 years ago when businesses were moving from the midwest to the south. Now they just leave the country. And if you think one world government is so terrific so that you bow and scrape before other authorities, then you have no right to gripe when business choses to go global too.

  6. Norma:

    I am not sure how old you are, but I remember the days when in some parts of this country you could barely breathe the air. I traveled to the east coast in 1965, and, as we drove down the coast to New Jersey, the air was so acrid it burned your nose and throat to breathe it.

    Is that what you want to go back to? Our air so foul it hurt to breathe it? Our rivers, lakes, and streams so filthy and filled with sludge that nothing could survive? Our land filled with garbage and waste?

    I have visited your blog, and you seem to have some pretty caring views. How is it that you don’t care about our environment? Environmental laws are made to protect the only home we have here on Earth, and I, for one, don’t feel one bit sorry for companies that would try to destroy our environment.

    As to a one-world government, I don’t remember ever saying I supported one. In fact, I think globalization is destroying us. But guess what, the big companies love it because they can exploit poorer countries, their workers, and their environments. So as long as the likes of WalMart control the global economy, we will have jobs going overseas. It really has little to do with environmental laws, but it has a lot to do with greed.

  7. Iceironman says:

    I am correct. Corportations pass the tax liabilty cost on to consumers. Yes they pay a price. But you do too. Just like you could be earning more but your company accepts that it must pass the ss tax on to lowering your wage.

  8. Iceironman says:

    So are the coal companies going to pay for pimp and spend? Even Obama says that companies wont pay these taxes, he even says the consumer will pay it. Do you not worship the words which he hath brought forth.

  9. Iceironman says:

    I just got my bonus for the first quarter results from my company. Imagine this, my company lost 126 million in the first q and I recieved a bonus. I guess that makes me evil, or my division performed well( kinda like some aig guys divisions performing well I guess). I would say Obama (govt) doesnt need to go offshore, he (govt) took 48% of my bonus check, and I eat alot of sugar so he can tax me there too!

    Thats 48% and I dont have govt healtcare yet. Where is this country going?

  10. Ice:

    If your argument is that we pay – then that is the case no matter whether it is a sole proprietorship, a partnership, or a corporation. All businesses pass costs on to the consumer.

    Any time a business is required to change or improve conditions, it will pass it on to the consumer. Thank God, consumers cared about the environment enough to absorb the cost associated with the Environmental Protection Act, the Clean Air Act, and the Clean Water act.

    Our environment deserves the utmost in protection. You don’t remember the days when our air was pretty much intolerable or our rivers were filled with filth (and some still are).

    And, no, I do not worship his words. I disagree with some of the things he is doing – like building up our troops in Afghanistan.

  11. Iceironman says:

    Lets go nuclear instead of building super duper cool trains as Obama sees fit.

  12. Iceironman says:

    http://www.bloomberg.com/apps/news?pid=20601087&sid=aAKluP7yIwJY

    The bothersome thing to me about Obama, is that he talks of taxing the corportations, not the jobs that need to be created, in fact, he will destroy jobs. If you notice in the article, Obama claims this will save jobs, but it is just lip service considering he has never had to do a payroll or ran a company.

    Your article points out that multinationals payed only 2%. Microsoft payed 26% in taxes. Say bye bye to more US jobs. Ill trust a businessman trying to make a profit over a politician going after tax dollars.

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