Combatting Corporate Flight
The Obama Administration yesterday made a significant announcement on deterring corporations from hiding their assets overseas:
Treasury Secretary Jacob J. Lew announced rules on Monday that are aimed at making it more difficult for American companies to lower their tax bills by relocating overseas and that would wipe out the benefits for those that do. It is the administration’s latest move to sidestep a paralyzed Congress and tackle a politically charged element of President Obama’s agenda.
“While there’s no substitute for congressional action, my administration will act wherever we can to protect the progress the American people have worked so hard to bring about,” Mr. Obama said in a statement after the regulations on the so-called corporate inversions were announced.
Congressional action is required to fully close the tax loopholes that corporations exploit. But until we have a functional Congress, this will have to do.
Click here for reuse options!Copyright 2014 Liberaland
By: Stuart Shapiro
Stuart is a professor and the Director of the Public Policy
program at the Bloustein School of Planning and Public Policy at Rutgers
University. He teaches economics and cost-benefit analysis and studies
regulation in the United States at both the federal and state levels.
Prior to coming to Rutgers, Stuart worked for five years at the Office
of Management and Budget in Washington under Presidents Clinton and
George W. Bush.
28 responses to Combatting Corporate Flight
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mea_mark September 23rd, 2014 at 14:36
I sure hope congress can get on board with this and think about America rather than their campaign contributions.
searambler September 23rd, 2014 at 20:26
And I hope I win the lottery. Frankly, I think my chances are better…..
Wayout September 24th, 2014 at 00:27
Yeah. Just when are Obama’s friends at GE going to start paying taxes on their profits?
mea_mark September 24th, 2014 at 09:36
When the laws are made and fairly applied to all.
mea_mark September 23rd, 2014 at 14:36
I sure hope congress can get on board with this and think about America rather than their campaign contributions.
searambler September 23rd, 2014 at 20:26
And I hope I win the lottery. Frankly, I think my chances are better…..
Wayout September 24th, 2014 at 00:27
Yeah. Just when are Obama’s friends at GE going to start paying taxes on their profits?
mea_mark September 24th, 2014 at 09:36
When the laws are made and fairly applied to all.
Red Eye Robot September 23rd, 2014 at 14:40
“While there’s no substitute for congressional action,” TRANSLATION: “My actions are nothing more than window dressing designed to give the appearance of action during an election season”
mea_mark September 23rd, 2014 at 15:01
It’s more than window dressing. You would know that if you were capable of learning and reading and putting aside your partisan hate. Even some republicans are for this, it is about America, not politics.
Red Eye Robot September 23rd, 2014 at 14:40
“While there’s no substitute for congressional action,” TRANSLATION: “My actions are nothing more than window dressing designed to give the appearance of action during an election season”
mea_mark September 23rd, 2014 at 15:01
It’s more than window dressing. You would know that if you were capable of learning and reading and putting aside your partisan hate. Even some republicans are for this, it is about America, not politics.
R.J. Carter September 23rd, 2014 at 15:24
Maybe we should consider why operating in Canada is more attractive than operating in the United States, and adjust accordingly?
Wayout September 24th, 2014 at 00:25
Oh no, that makes too much sense. The idea of liberalism is to make it harder and more expensive to operate companies in this country, you know, make everybody’s life equally miserable. And if you don’t have enough money for something, there will be a government subsidy – it’s called wealth redistribution.
Dwendt44 September 24th, 2014 at 01:05
take your head out of the sand. The idea of liberalism is to make the average person’s life better. Billionaires can still live comfortably with a little less, the poor can live a lot better with a little more.
Conservatives think the poor should pay way more and the rich pay nothing. That’s why they support the hiding of profits in tax havens, corporations are people who can lord over their employees, and women are useful second class citizens that need oversight by bible thumpers who have no clue about much of anything.
R.J. Carter September 24th, 2014 at 09:32
Fighting generalization fire with generalization fire?
rg9rts September 24th, 2014 at 08:33
Just means that Canada has bigger loopholes
R.J. Carter September 23rd, 2014 at 15:24
Maybe we should consider why operating in Canada is more attractive than operating in the United States, and adjust accordingly?
Wayout September 24th, 2014 at 00:25
Oh no, that makes too much sense. The idea of liberalism is to make it harder and more expensive to operate companies in this country, you know, make everybody’s life equally miserable. And if you don’t have enough money for something, there will be a government subsidy – it’s called wealth redistribution.
Dwendt44 September 24th, 2014 at 01:05
take your head out of the sand. The idea of liberalism is to make the average person’s life better. Billionaires can still live comfortably with a little less, the poor can live a lot better with a little more.
Conservatives think the poor should pay way more and the rich pay nothing. That’s why they support the hiding of profits in tax havens, corporations are people who can lord over their employees, and women are useful second class citizens that need oversight by bible thumpers who have no clue about much of anything.
R.J. Carter September 24th, 2014 at 09:32
Fighting generalization fire with generalization fire?
rg9rts September 24th, 2014 at 08:33
Just means that Canada has bigger loopholes
Dwendt44 September 23rd, 2014 at 19:13
” Whole company accounting” would help a good deal, that way there’d be no real benefit to hide profits overseas. They could use the same accounting reports for taxation that the corporation uses to report to the share holders.
Share holder report for 2013: We made billions,
Tax forms for 2013: We lost money send refund.
Dwendt44 September 23rd, 2014 at 19:13
” Whole company accounting” would help a good deal, that way there’d be no real benefit to hide profits overseas. They could use the same accounting reports for taxation that the corporation uses to report to the share holders.
Share holder report for 2013: We made billions,
Tax forms for 2013: We lost money send refund.
Wayout September 24th, 2014 at 00:23
Hey, didn’t Obama a few years ago actively support the sale of a US automaker to the Italians?
rg9rts September 24th, 2014 at 08:32
Want to buy a Chrysler???
Wayout September 24th, 2014 at 00:23
Hey, didn’t Obama a few years ago actively support the sale of a US automaker to the Italians?
rg9rts September 24th, 2014 at 08:32
Want to buy a Chrysler???