United States President Barack Obama has introduced to create a new minimum tax on foreign earnings to dismay large U.S. firms from sending jobs to regions like India, as he increases his outburst over outsourcing in the election year. For United States multinationals the preferred action would give a hard time for business to transfer jobs abroad and will give incentives to those who get back the operations in the United States.
President Obama’s proposal is part of a huge tax plan that focuses on his re-election strategy at the same time when many Americans are jobless. The United States business tax system has little effort to encourage job creation and investment in the United States and produce various opportunities that will boost profits and shifting production in the United States.
Another proposal of President Barack Obama is that the firms will no longer be able to claim tax deductions for transferring their operations overseas, meanwhile, the president is offering to provide a 20 percent income tax credit for the expenses of moving back the operations into the United States in order to help in bringing back the jobs. The recent corporate tax system is out of date , inefficient and uneven said by the President Obama.
He added that it gives tax breaks for transferring jobs and profits abroad and strike firms that choose to operate in the United States with one of the largest tax rates in the globe, it serves as an unnecessarily disorder and forces America’s small-scale businesses to pay out numerous hours and money organizing their taxes.
The tax system should not provide firms an incentive to place production overseas or use in accounting games to transfer profits in other regions that destroys the United States tax base. He added that starting the principle of a minimum tax on foreign revenue would support in determining the issues and afflicted a global origin to the lowermost in tax rates.
REFERENCES:
http://profit.ndtv.com/news/politics/article-obama-proposes-tax-on-forex-earnings-to-discourage-outsourcing-298373
http://news.taaza.com/news/882242-obama-proposes-tax-on-forex-earnings-to-discourage-outsourcing.html
http://www.google.com.ph/url?sa=t&rct=j&q=obama%20proposes%20tax%20on%20forex%20earnings%20to%20discourage%20outsourcing&source=web&cd=8&cad=rja&ved=0CE8QFjAH&url=http%3A%2F%2Fforexnewslive.net%2Fobama-proposes-tax-on-forex-earnings-to-discourage-outsourcing%2F&ei=By1YUPW8AajVigK3yoGQDQ&usg=AFQjCNGVIydkxhD1kgaoXek7cBiVNaFylw
http://www.financialexpress.com/news/obama-proposes-tax-on-forex-earnings-to-discourage-outsourcing/915767/
