ATF: Tax proposal ‘will kill U.S. jobs’
May 12, 2009 by Personal Liberty News Desk
President Obama has vowed to raise more than $200 billion through a crackdown on what he called corporate tax loopholes, causing the anger of many in the business community.
Americans for Tax Reform (ATF) has given voice to that criticism by enumerating some of the "job-killing" provisions of the current tax code.
Quoting OECD statistics, it says the U.S. has a combined marginal corporate rate of nearly 40 percent, the highest in the developed world.
It also claims America is one of the few countries that double-taxes the international profits of its companies, although there are regulations, such as the deferral provision, that allow companies to avoid this double taxation until they repatriate the profits to the U.S.
The organization concludes that if Obama follows through on his plan to scrap the deferral rule without lowering the corporate rate or reforming the tax code, American companies will set up permanent foreign headquarters, taking jobs and capital with them.
Obama has said the money is needed to narrow the yawning budget deficit that is projected to reach $1.8 trillion this year.
He has also suggested that removing incentives for U.S. companies to move their operations offshore to avoid paying corporate income taxes will encourage them to create more jobs in America, spurring economic growth.