President Obama targets tax dodgers

    President Barack Obama is cracking down on tax loopholes for businesses and the wealthy.





    President Barack Obama is cracking down on tax loopholes for businesses and the wealthy.

    On May 4, the president announced that he wants to make them pay their fair share with a new initiative, The Washington Post reports. The proposal includes new tax laws, new reporting standards and 800 more IRS agents.
    This offensive, which will raise an estimated $210 billion over the next 10 years, is aimed against those who skirt U.S. taxes by storing money in off-shore accounts.
    "I want to see our companies remain the most competitive in the world,” Barack said during a White House event yesterday. “But the way to make sure that happens is not to reward our companies for moving jobs off our shores or transferring profits to overseas tax havens."
    The plan targets the permission to hold off on paying U.S. taxes on money made overseas (where taxes are often lower) as long as the money is reinvested. American corporations consider that allowance to be a key tax code feature. It means they don’t have to pay additional fees on foreign income until the cash is brought back here. 

    "It’s a tax code that says you should pay lower taxes if you create a job in Bangalore, India, than if you create one in Buffalo, New York," the president explained yesterday.
    Barack said the proposal could be "a down payment on the larger tax reform we need to make our tax system simpler and fairer."
    The initiative is part of Barack’s $3.4 trillion budget, which Congress approved last week. However, if the budget doesn’t hold up to their inspection, it could increase deficit projections.
    "Further study is needed to assess the impact of this plan on U.S. businesses," Sen. Max Baucus of Montana said in a statement. "I want to make certain that our tax policies are fair and support the global competitiveness of U.S. businesses."



    — Sonya Eskridge




    Here’s more:
    Baracks’s take on his first 100 days
    Date night in Washington D.C.
    Justice David Souter steps down




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