Wednesday, May 06, 2009

Obama After Foreign Earnings

Like any good bureaucrat, finding more money to spend on more and more government programs is a birth right. On the heels of "excessive" executive pay and perks, Obama is now after large multinational corporations that attempt to avoid the high corporate tax rate on American firms' international earnings.

Obama is safe in attacking big business, because he's for the "little guy." Big oil, big corporations are free game; big government gets to trump them every time in his world.

Why do firms play games with these loop holes? Because they can. American corporations, and as a result, its citizens, continue to suffer from over-burdensome taxes. If a firm earns money in another nation, what is best for those proceeds? Giving them to some government -- the host or the parent nation -- is not on the top of their list.

Higher taxes on American corporations impact their abilities to compete -- to invest and grow their businesses. Repatriation of the foreign-earned money is not in the best interest of the corporations or their stakeholders because of the tax penalty.

Obama continues to show his anti-business hand as he continues to implement his government-is-good-only-if-it-controls-all policies.

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