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WP Pushes For ‘Minimum Global Corporate Tax’

From the increase corporate tax lobbyists at the Washington Post:

Obama’s record on outsourcing draws criticism from the left

By Tom Hamburger, Carol D. Leonnig and Zachary A. Goldfarb, Published: July 9, 2012

Barack Obama promised voters four years ago that he would work to slow the outflow of American jobs to other countries, proposing to revamp a federal tax code that encourages companies to maintain overseas operations.

Obama as president has continued to call for rewriting the rules that allow U.S. corporations to avoid paying taxes for a time on income generated overseas. But the broad tax changes have not happened.

What’s this? There is a tax increase on business that Obama has missed?

While White House officials say they have been waiting on Congress to act, Obama’s critics, primarily on the political left, say he has repeatedly failed in other ways to protect American jobs from being moved overseas. They point to a range of actions they say he should have taken: confronting China, reining in unfettered trade and reworking a U.S. visa program that critics say ends up sending high-tech jobs abroad

So the left wants us to “confront” the largest holder of our debt, introduce more protectionism, and let in more immigrant workers. Yes, that is the perfect solution to our economic problems.

American jobs have been shifting to low-wage countries for years, and the trend has continued during Obama’s presidency. From 2008 to 2010, U.S. trade with China alone cost about 450,000 American jobs because of the growth of Chinese exports, said Robert E. Scott, a pro-labor advocate at the liberal Economic Policy Institute…

“I think he has walked away from the campaign commitments,” said Scott, the institute’s director of trade and manufacturing policy research. “He has done far too little to improve U.S. trade.”

According to a study by the U.S. Bureau of Economic Analysis, large American companies in 2010 barely added any workers in the United States, increasing their numbers by 0.1 percent, while they expanded their foreign workforce by 1.5 percent. That was business as usual — between 2004 and 2010, the bureau reported, foreign affiliates hired 2 million workers while 600,000 were added by the companies at home

During his run for president in 2008, Obama promised to “end those tax breaks to companies that ship jobs overseas.” It was a pledge he made repeatedly on the campaign trail.

Yes, The Post is reporting that some on the left are unhappy with Obama’s policies, which they claim are outsourcing jobs overseas despite his campaign promises to the contrary. But they are really just using those complaints as an excuse to push for Obama’s minimum tax on multinational US corporations, which we have talked about before:

Obama has continued to propose the tax rewrite during his presidency, but only this year did he put it in the spotlight. In his State of the Union address in January, he unveiled his most ambitious plan yet to overhaul the tax code and discourage the offshoring of U.S. jobs. The proposal’s centerpiece was a minimum tax on global corporate profits that Obama has continued to tout.

And never mind that the US corporate tax is already the highest in the world. Obama’s minimum global corporate tax plan would require US companies operating overseas to pay, for the first time, a minimum tax rate on their foreign earnings. And, according to the Wall Street Journal, Obama’s "plan would raise an additional $250 billion in taxes over 10 years."

That would do wonders for the US economy.

But neither Democrats in the Senate nor Republicans in the House have taken up the measure.

Perhaps they don’t want to destroy the US economy as much as Obama and the rest of the radical left do. Or maybe they just want to be re-elected.

White House officials say they are pushing Congress to bring the issue up for a vote before the August recess. It remains unclear whether lawmakers will do so. The tax rules could be addressed during negotiations over a broader overhaul of the tax code, which is unlikely to occur until after the November election.

“We laid them out in a very high-profile way,” said senior White House economic adviser Jason Furman. “Now for broad reform, you need Congress. Everybody acknowledges that substantive tax reform takes time to accomplish.” …

But don’t worry. If Obama gets re-elected, he will have a lot more ‘flexibility’ rammed through.

This article was posted by Steve on Tuesday, July 10th, 2012. Comments are currently closed.

One Response to “WP Pushes For ‘Minimum Global Corporate Tax’”

  1. Chinnubie says:

    How can anyone doubt Ayn Rand’s predictions of “Atlas Shrugged” to be coming so true. Even if Romney were to get elected there is no guarantee he won’t continue to continue on the road of more regulation just not quite as radical as Obama. How many new regulation got put into law under Bush, like well over 5,000 new statutes. UNDER BUSH, when is this going to END!!!!! Who IS John Galt???

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