Widgetized Section

Go to Admin » Appearance » Widgets » and move Gabfire Widget: Social into that MastheadOverlay zone

Obama: Close tax loopholes for businesses with overseas operations

By CALLIE MORAN
February 22, 2012

Obama: A tax cut or a tax hike?

President Barack Obama wants to cut the corporate tax rate by seven percentage points but the move doesn’t mean companies would pay less taxes.

His plan also eliminates many loopholes and subsidies that corporations currently use to pay far less taxes and could result in a higher — not lower — final payments to Uncle Sam.

The White House is targeting companies that move jobs and operations overseas while providing relief for companies who keep jobs at home.

While both political parties support — in principle — revamping tax laws, Obama’s proposal will undoubtedly face opposition from Republican who tend to favor protecting corporate interests.

“Republicans will protect their big business buddies,” political consultant Katherine Browne tells Capitol Hill Blue. “They won’t support a plan that makes it easier for corporations to avoid paying their fair share of taxes.”

Capitol Hill watchers give Obama’s plan little chance for success in Congress, particularly in a campaign year.

Treasury Secretary Tim Geithner is expected to release details of the plan — which lowers the corporate tax rate from 35 to 28 percent — Wednesday.

Enhanced by Zemanta

One Response to Obama: Close tax loopholes for businesses with overseas operations

  1. Almandine

    February 23, 2012 at 12:38 am

    Knowing that his pals in the senate will never agree to this plan, he’s free to wax politic all he wants without fear of actually having his bluff called.