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Is Obama's Multinational Tax Squeeze Fair Play?

by Jane Sasseen on May 8, 2009

Is Obama's Multinational Tax Squeeze Fair Play?



The verbal slugfest between the Obama Administration and American business leaders over new proposals that would raise taxes on profits earned abroad has framed a complex issue in simplistic ways. The Administration, resorting to starkly populist language, has all but labeled some global companies as tax evaders. Meanwhile, R. Bruce Josten, the top lobbyist for the U.S. Chamber of Commerce, accuses the President of hammering "companies struggling to compete in global markets."

Policy rumbles over taxes are never pretty, and this one threatens to increase costs by nearly $200 billion for U.S. corporations operating overseas. The Administration is proposing tougher rules for when profits generated abroad should be taxable in the U.S. It's also taking sharp aim at the common practice of shifting profits from foreign subsidiaries in countries with high tax rates to offshore tax havens (table). Another focus: tighter limits on the credits companies receive for...Read More >>



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