What Is Tax Deferral?

The Obama Administration is proposing to raise more than $100 billion from American multinational corporations by limiting in some way the ability of U.S. companies to defer tax on profits earned abroad. The premise behind the proposal is that by raising the taxes paid on the foreign profits of U.S. companies earned abroad, the companies will somehow have more incentive to locate their operations here in the United States.

The proposal, however, is flawed and fails to recognize that in the increasingly global economy where capital flows freely across borders, the United States can no longer expect other countries to follow its policies. The proposal will penalize the foreign operations of U.S. companies operating abroad and make it more difficult for them to compete with foreign companies.

To learn more, go to: http://www.taxfoundation.org/news/show/24683.html

Category:

News & Politics

Tags:

• taxes
• Tax Foundation
• tax deferral
• corporate taxes
• business taxes
• economy

[101ericrobert]

who sells stuff in china we make stuff there

[bluefootedpig]

@LoveToday8 that would work if we were still a manufacturing country. we are much more tech and service. The great thing about tech and service is that the average income is much greater. The problem is people want to get paid much higher than what your skillset is worth. So instead of trying to force a halt on technology and improvement, you could learn the new system and go with it. That is what happened during the industrial revolution, and now that is happening during the tech revolution.

[LoveToday8]

@bluefootedpig We could help the poor people by letting them have an opportunity to obtain a manufacturing job. Right now we are losing solidly middle-class manufacturing jobs to China, Mexico, Vietnam, etc. due to corporate greed. If we had more manufacturing jobs here, we could afford to pay extra for American-made goods. I personally don't mind paying extra to support American workers.

We pay a price for those low prices=less jobs.

Wal-Mart knows what they are doing.

[LoveToday8]

Once you start making your goods in China and Mexico, you're no longer an "American company." There are plenty of people here in the U.S. that would gladly take those manufacturing jobs BUT corporations are in a global race to drive down rages (globalization) so they'd much rather pay someone in China pennies on the dollar than pay an American worker a decent wage with benefits. We also need universal health care provided by the U.S. government. That would help businesses save money.

[JasonBeeArr]

This ad is implying the German company doesn't pay ANY taxes to Germany. Could that be true?

[zenofsong]

@revolutiongames2004

If the common people could afford the services of the accountants and lawyers that corporations can easily afford they'd be paying nothing on taxes every year. I LOVE the idea of putting the taxes on those who can afford it, but this is too little too late. I have no doubt that corporate fatcats will expertly dodge this tax as well.

[dead8401]

America has tons of giant international corporations, there is nothing coming out of Germany that is going to compete with McDonald's or Coca Cola.

[revolutiongames2004]

normally id be against this sort of thing, but when corporations decide that theyre going to find every way they can to "cheat" on taxes (including bribes to congress), this extra tax really doesnt seem like that much. Aside from this: middle class americans are being duped into more taxes, because the governement is being cheated out of an estimated 1/2 of its money by corporate america. (Source:Perfectly Legal, David Cay Johnston)

[altha2008]

want fair play and free trade does not offer that

besides ever 20 years or so a COn would get into office and job the taxes down to around 10% then all people who have off shores accounts bring there money home

[altha2008]

want a fair playing field for american companies espcailly the small mom and pop comanies not big global companies

there has never been FAIR TRADE AGREEMENT this would make it fair