The bill would have cost U.S. companies that move overseas $143 million in additional taxes over the next decade, according to the Joint Committee on Taxation, which analyzes tax legislation for Congress. Companies moving into the U.S. would have seen their tax bills drop by $357 million over the same period.
The difference — $214 million — would have been added to the budget deficit.
The White House and some Democrats in Congress have been making the case that a growing number of U.S. corporations are using international tax loopholes to avoid paying U.S. taxes.
On Wednesday, Obama criticized U.S. companies that reincorporate overseas as a way to lower their U.S. tax bills. Many of these companies keep most of their operations in the U.S., including their headquarters.
The process, called an inversion, allows firms to shield more of their foreign earnings from being taxed in the U.S.
“You know, they are renouncing their citizenship even though they’re keeping most of their business here,” Obama said in a speech in Kanas City, Missouri.
“They shouldn’t turn their back on the country that made their success possible,” Obama added.
Turning their back on America is central to 21st century corporate philosophy!
I have no doubt the Denver Post is correct–Republicans winning the Senate will moderate the party and sensible legislation to end this obscene practice will result quickly. And I’m sure likely new senator from Georgia David Perdue will lead the charge:
During a July 2005 deposition, a transcript of which was provided to POLITICO, Perdue spoke at length about his role in Pillowtex’s collapse, which led to the loss of more than 7,600 jobs. Perdue was asked about his “experience with outsourcing,” and his response was blunt.
“Yeah, I spent most of my career doing that,” Perdue said, according to the 186-page transcript of his sworn testimony.
Georgia Republican Senate candidate and ex-CEO David Perdue isn’t shrinking from any part of his business record, even when it comes to outsourcing. During a stop on Monday Perdue said he was “proud of” his record on outsourcing.
His comments came after a scathing Politico article reported Perdue saying that he was hired as the CEO of the failed Pillowtex Corp. in large part, to outsource much of the company’s manufacturing.
“Defend it? I’m proud of it,” Perdue said during a press stop in Buckhead, Georgia on Monday according to the Atlanta Journal-Constitution. “This is a part of American business, part of any business. Outsourcing is the procurement of products and services to help your business run. People do that all day.”
Now that’s the kind of moderation we can expect from a Republican Senate!