Global companies fear Obama's new tax proposals

[babylonsister]

This didn't take long. Whhhaaaaa! :cry:

Global companies fear Obama's new tax proposals
Mon May 4, 2009 11:00am EDT

By Kim Dixon


WASHINGTON, May 4 (Reuters) - Multinational companies on Monday said President Barack Obama's proposals to rein in corporate loopholes will make them less competitive, while consumer advocates said the changes are long overdue fixes for abuse.

Obama, carrying out a campaign promise, plans to raise $210 billion over a decade by revising a tax policy that lets global companies defer income earned abroad, and by closing a loophole administration officials say lets companies hide income from foreign subsidiaries.

A broad swath of companies -- from banking institutions and hedge funds to pharmaceutical and technology companies -- will be impacted by the changes, experts said.

"It's really hitting most Fortune 100 companies that depend to a great deal on growth of foreign markets for growing their total earnings," said Drew Lyon, a principal at PricewaterhouseCoopers' Washington office who advises Fortune 500 companies on tax policy.

About half of multinationals companies' income is earned abroad, he said.

One proposed change, which will raise about half of the $210 billion, requires companies that defer income earned abroad to also defer deductions associated with that income.

more...

http://www.reuters.com/article/economicNews/idUSN0440647120090504

[dipsydoodle]

1. My understanding has been

multinationals don't actually pay tax anywhere so any changes will be downhill for them.

[ContinentalOp]

2. WTF kind of journalism is this!?

"Multinational companies on Monday said"!? And then they just quote one guy from pricewaterhousecooper? Total bullshit.

[babylonsister]

5. Good point. I guess because he advises Fortune 500 companies

on taxes, he's the expert of the day.

[underpants]

8. I agree. CNN lead with the counterargument

Wolf

they never really stated what Obama said.

[Skink]

3. Less competive to what?

[AtomicKitten]

4. Tough shit for them. U.S. companies have decimated the middle class here

while building/sustaining a middle class in other countries. Enough!

[SemiCharmedQuark]

6. Thieves Say New Anti-Robbery Laws Will Hamper Their Business!

Film at 11!

[HopeOverFear]

7. lol

[firedupdem]

9. Yeah, cuz they employ so many of us based on this profit they've

been allowed to keep! Bullshit!