Obama Targets Overseas Tax Dodge

I think that any tax breaks given to companies outsourcing jobs should be stopped and given to the companies struggling to keep American workers at home. However, until something is done to give universal health care, we will still not be competitive with other governments and we will continue to lose jobs to foreign countries. Just about every competitive country offers some government sponsered health care. Only in the USA do the employer and employee have to pay for basic health care. It's not the lower hourly wage that makes other countries so appealing to US businesses, it's the fact that other governments provide basic health coverage. A big brouhaha was made recently over the high salaries of auto workers. They said they were making 60K and above per year. In reality, about half of that amount was in their benefits package. The auto industry is one of the few that provides top health coverage as well as a living wage. Most US companies can't do that and they are almost forced to outsource to a country where the government gives health coverage.

I guess this isn't a sensational enough topic! I say it's about time. I'm sure some of my friends on the right will disagree with this and say it will cost jobs but I think it's a good idea! I'm sure it will somehow encourage more people to "turn gay" or become "baby killers"... Annie

Many other countries tax the profits of their companies earning money outside its borders. They also give a tax credit for foreign taxes paid so that the company is not taxes twice for the same profit, the same thing for individuals. What will happen is some of these companies will simple restructure in a Tax Friendly nation and then only pay taxes on the money made in the US. As it is now they are taxes on some of the money they make overseas. The net result will be a tax loss of the government as well as the loss of some jobs to foreign countries. The bigger questions should be why do companies move their factories and operations overseas? Low wages is one factor, but a greater concern to the business is the government interference and regulations. Just to give you an example of over regulation by the governmnet; OSHA has a ruling that in new building no permanent fixture can protrude into the hallway if it is greater than 4 inches and less that 24 inches. the Americans with Disability Act (ADA) states that all things in a new building must be handicapped accessible. Pay phones have to be built in a recess that allows a person in a wheel chair to maneuver into the recess and use the phone and get out with ease. The old way they could go up to the phone(it stuck out about 8-12 inches) and use it. In another case a school I was working at had an ADA and OSHA approved elevator in the building and we had a new student come to the school who had a new power chair with a heavy duty battery pack on the back and elongated frame. It would not fit in the elevator and the parents did not want her using a regular wheel chair in school. We appealed and lost the case and had to spend over $100,000 to retrofit the elevator system. You have Civil Rights Attorneys working for the Federal Government and State Governments that interpret the law to say that if a person feels discriminated against then it is up to the person charged to prove that they did not discriminate against them. You are guilty until you prove your self innocent. If card check gets approved then for sure many companies will move their whole operations overseas. It is interesting to note that the government could greatly expand tax revenue if it would allow for more drilling in the US and open more refineries (too costly to fight all the environmental challenges to build a refinery). They could raise as much as he is going to collect by going after overseas profits and think of the new jobs created and the tax revenue generated from that.

If he is confining it to money made in the US but put in overseas banks to hide it from the IRS, I'm behind him all the way.. it's about time! If he is including money made overseas then I would oppose that. The US government isn't entitled to taxes on any money made in another country, even if it's made by a US based company, or an American. That would be no different than a state legislature and governor trying to tax people who live in another state.

I aggree with ParaTed2k. Wether paying tax to the US or overseas depends on where the profits from.If the US companies use the resourses of foreign countries and make profits from foreign coutries,I think tax should pay overseas.If the resourses and profits from the US,it really belongs the US.