Obama to seek tighter tax rules for corporate offshore profits -official
(Reuters) - The Obama administration said on Thursday it will seek new limits on overseas tax avoidance by corporations in its forthcoming budget proposal, reprising an approach it has made before to try to raise government revenue via a tighter corporate tax code.
With the U.S. Congress gridlocked over fiscal policy, past efforts by Democratic President Barack Obama to crack down on what he sees as offshore corporate tax loopholes have largely failed. The latest measures could meet the same fate.
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Additionally, under the new budget, some U.S. technology companies would face new limits on their ability to shift profits abroad by housing valuable software overseas, the official said.
Some U.S. businesses move profits into low-tax jurisdictions for reasons that have no economic benefit other than to avoid taxes, said Jason Furman, chairman of the White House Council of Economic Advisers, at a conference on Thursday.
"Such profit shifting is extensive," he said.
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This issue is very unpopular among the 1%. It would bring in much needed and long avoided corporate tax revenue. If anyone is serious about wanting to minimize the deficit, keep social programs going, or keep the one percent from owning this country, they must follow this and contact your congressperson.
Many on the right will claim it's unfair to tax corporations on profit made overseas. Please understand, this is largely profit that was made from United States sales, but through loopholes and shelters they claim the profit is made overseas. Don't fall for it. Many companies keep their patents in other countries. A royalty is paid on a sale here in the US to the patent holding subsidiary in another country, technically moving the profit to that country. You should see the arrangement Starbucks has and how they divert their profit overseas. We must fight this issue and not allow the right to kill this.