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Obama To Raise Corporate Taxes By $250B

First we have the White Houses official press release, via their flagship outlet, the New York Times:

Obama Offers to Cut Corporate Tax Rate to 28%

February 22, 2012

WASHINGTON — President Obama will ask Congress to scrub the corporate tax code of dozens of loopholes and subsidies to reduce the top rate to 28 percent, down from 35 percent, while giving preferences to manufacturers that would set their maximum effective rate at 25 percent, a senior administration official said on Tuesday.

Mr. Obama also would establish a minimum tax on multinational corporations’ foreign earnings, the official said, to discourage “accounting games to shift profits abroad” or actual relocation of production overseas.

So Obama is going to introduce a new tax. An AMT for multinational corporations.

With the framework for changes that the Treasury secretary, Timothy F. Geithner, will outline on Wednesday, Mr. Obama will enter an election-year debate with Republicans in Congress and in the presidential race who seek even lower taxes for businesses.

What a coincidence that the White House would propose this right before Mitt Romney’s tax plan announcement in Detroit.

Mr. Obama is proposing that the simplification of the corporate code should not add to the deficit

Obama would never think of doing anything that would add to the deficit. Such as extending the payroll tax holiday.

[A]nd that most or all revenue raised by closing tax breaks should be used to lower rates or offset the cost of new or existing tax breaks favoring manufacturing, clean energy, and research and development activities, according to administration officials…

So his tax cut will raise revenue. So it is a tax increase. And, furthermore, these tax increases will go to Obama’s pet projects, like rewarding his donors in the ‘green energy’ racket.

Translation: The US is the only country that taxes foreign earnings. But that is not bad enough. Obama is going is do away with any loopholes that allow them to avoid this tax.

And being the only companies in the world that have to pay taxes on their foreign earnings will make them much more competitive.

To its credit, the Wall Street Journal spells things out a little better:

Obama Proposes Tax Revamp

FEBRUARY 22, 2012

The Obama administration will propose lowering the top income-tax rate for corporations to 28% from 35% but would raise overall tax revenue by eliminating dozens of popular deductions in an effort to restructure the corporate tax code.

Again, this means that corporate taxes will actually go up.

The proposal… raises taxes on oil and gas companies that would lose many large deductions and subsidies.

These higher taxes on oil and gas s, of course, will be passed along to the consumer at the pump and in your utilities bill, and everything you buy that has been transported. Which is to say, everything.

But it will do wonders for the economy.

The plan would require U.S. companies operating overseas to pay—for the first time—a minimum tax rate on their foreign earnings

So Obama effectively wants an entirely new tax. A tax that no other country in the world has. Yes, this will certainly give American companies a leg up.

The administration’s plan would raise an additional $250 billion in taxes over 10 years to offset or eliminate many temporary deductions, credits and other measures that are extended every year, such as a research and experimentation tax credit, a senior administration official said…

So it turns out that Obama’s wonderful tax cut for corporations will actually raise taxes on them by a mere $250 billion dollars.

What a surprise. And what a shock that the New York Times and the rest of the Democrat media complex would try to tell us that it is a corporate tax cut.

This article was posted by Steve on Wednesday, February 22nd, 2012. Comments are currently closed.

5 Responses to “Obama To Raise Corporate Taxes By $250B”

  1. GetBackJack says:

    I thought Congress, specifically the House of Representatives, was in charge of tax policies.

  2. Rusty Shackleford says:

    Yes, they must find a way to increase “revenues” to feed the (never satisfied) public dole programs. It’s really the only way democrats can buy votes, except by money laundering schemes through the unions, etc.

  3. BannedbytheTaliban says:

    “while giving preferences to manufacturers” – i.e. union shops

  4. untrainable says:

    Where are the exemptions for GE? Will they be expected to pay some tax on their $4B revenue, or will they get tax exempt status because they have done so much for the (Chinese) economy?

  5. potus4 says:

    Cue Ross Perot and the giant sucking sound. Wonder how many companies will relocate to Mexico or Canada to avoid Dear Leader’s tax “reform”?

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