The President is really bent on cracking down on tax evasion in efforts to funnel more funds into the country. We all got a good indication of this when he attended the G20 emerging with the whole pack naming tax havens and blacklisting them.
In an address, President Obama said that he will introducing reforms that the he will be hunting down companies who are evading US taxes by setting up offshore entities. The President proposed that he will be raising taxes in overseas profits.
In addition, he aims to remove the tax breaks for companies who outsource jobs and reduce the amount of taxes lost to overseas tax havens.
“If financial institutions won’t cooperate with us, we will assume that they are sheltering money in tax havens and act accordingly,” the President said.
This plan, however, is without opposition. The business community has said their part on the matter, saying that the crack down will only do more harm than good for US businesses.
Dan Mitchell of the Cato Institute (a non-profit policy research group) expressed his disagreement saying, “His proposals would put American corporations at a great disadvantage, which is a very foolish policy in a competitive global marketplace.”
Source: ABC News
