# Obama To Tax US Companies Foreign Earnings/Holdings Over Seas.



## WhatInThe (Feb 2, 2015)

*Obama To Tax US Companies Foreign Earnings Over Seas.*

New tax on US companies foreign over seas earnings. A 19% one time tax.

http://www.marketwatch.com/story/obama-to-propose-tax-on-firms-foreign-earnings-2015-02-01-121031727

Normally I'm against taxes but since it's foreign earnings that probably get sheltered abroad and don't get reinvested here I could handle this. And it's supposed to be a one time tax.

Money to be used for US infrastructure-this is where it gets messed up. Will it be needed infrastructure or a make work project. The 2008/2009 reinvestment act wound up remodeling bus and train stops around here among other things


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## AZ Jim (Feb 2, 2015)

Our infrastructure is in dire need of help!  Water Lines, Highways, Bridges etc all are old and in some cases dangerous. I am fully supportive of the proposal.


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## QuickSilver (Feb 2, 2015)

Finally..  Make it less profitable to move jobs overseas..


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## SeaBreeze (Feb 2, 2015)

I'm glad Obama has plans to do that, it's about time somebody did, makes sense to me.


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## Don M. (Feb 2, 2015)

Rebuilding our aging Infrastructure should be one of the governments Highest Priorities.  At least we would see something for our tax dollars, and it would put 10's of thousands of people back to work in good paying jobs.


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## SifuPhil (Feb 2, 2015)

So instead of using taxes to always try to get things done, why not put the unemployed to work on these "Hero" projects (sly reference to Soviet work projects)?

I'm all for taxing companies that hide their profits overseas, but it shouldn't be a one-time thing - it should be quarterly, as it is for every other U.S. company. They _should_ be penalized, or at least taken to account, for helping to ruin our economy.


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## darroll (Feb 2, 2015)

These companies are not dumb. This just sounds like a good idea.
We have a bridge here that is falling apart, we vote for the funds to fix it.
The money gets spent elsewhere.


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## ~Lenore (Feb 2, 2015)

:what1:
Do any of you really believe this money will be used that way?
   I am very skeptical myself.   Just more taxes. 
 I have not seen any tax that really accomplished what it was supposed to accomplish.


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## rkunsaw (Feb 2, 2015)

~Lenore said:


> :what1:
> Do any of you really believe this money will be used that way?
> I am very skeptical myself.   Just more taxes.
> I have not seen any tax that really accomplished what it was supposed to accomplish.



You are so right ~Lenore. And welcome to the forum. I'm sure glad to see you here.  :welcome:


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## ~Lenore (Feb 2, 2015)

:thankyou:I will try to be as nice as I can be.  
I do not need any new enemies!


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## AZ Jim (Feb 2, 2015)

~Lenore said:


> :thankyou:I will try to be as nice as I can be.
> I do not need any new enemies!



If this proposed new tax accomplished nothing more than serving up notice that the fat cats can't hide offshore forever, it will have done a yeoman's job.


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## Davey Jones (Feb 2, 2015)

Why didn't Obama do this when the Democrats were in control???


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## Warrigal (Feb 2, 2015)

If Obama pulls this off I hope our government, and all of the governments the world over, start taxing foreign companies on their turnover on local soil because they structure their finances in such a way as to make miniscule profit. Where the profit finally gets recorded is somewhere that charges no tax at all. 

It is only fair that tax is paid where the profit is really made, otherwise these companies are just parasites.


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## ~Lenore (Feb 2, 2015)

Davey Jones said:


> Why didn't Obama do this when the Democrats were in control???




*Good question?  *


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## Jackie22 (Feb 2, 2015)

*Obama Seeks Tax Changes for U.S. Firms Overseas*

Source: *Reuters*

*Obama seeks tax changes for U.S. firms overseas*
Mon May 4, 2009 6:06am EDT 

By Kim Dixon and Caren Bohan

WASHINGTON (Reuters) - President Barack Obama on Monday will propose changing provisions in the tax code that he says encourage U.S. companies to move jobs overseas, as part of a broader package aimed at saving $210 billion over 10 years.

U.S. officials said that in an announcement planned for 11:05 EDT (1505 GMT), Obama will seek to follow through on a campaign promise to change the tax treatment of American firms with overseas operations. That portion of his plan --*opposed by such firms as Pfizer Inc and Oracle Corp* -- would raise more than $100 billion in revenue over the next decade.

In an echo of a line he used often on the campaign trail last year, Obama vowed in a February address to the U.S. Congress to make the tax code more fair by "finally ending the tax breaks for corporations that ship our jobs overseas."

Currently, U.S. firms are allowed to defer paying taxes on profits earned overseas if they plow those profits back into their foreign subsidiaries. Critics say those rules encourage businesses to bolster their foreign operations instead of creating jobs at home. But an array of firms signed onto a letter to congressional leaders in March opposing changes to the so-called deferral provision, saying they would make U.S. businesses less competitive. The letter was signed by 200 companies and trade associations, including Pfizer, Oracle, Microsoft Corp Johnson & Johnson and General Electric Co as well as the Business Roundtable and the U.S. Chamber of Commerce.

Read more: http://www.reuters.com/article/marketsNews/idUSN0334332...




here is another article...

http://money.cnn.com/2009/05/04/news/economy/obama_corporate_tax_proposals/

I didn't look it up but I'm sure Republicans rejected it.


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## Josiah (Feb 2, 2015)

Davey Jones said:


> Why didn't Obama do this when the Democrats were in control???



He was dealing with a once in three generations economic crisis when he entered office left to him by the Bush administration, he still had aspirations that if he met them half way, the Republicans might be willing to do something constructive. Now the economy is much healthier and he no longer gives a damn what the Republicans think. What this budget is doing is stating an agenda for 2016


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## BobF (Feb 2, 2015)

How is the US so much better now than it was when he entered the Presidential office.    Bush would have left with mid $7 trillion debt showing, but for his last two years Pelosi and Reid got control of the Congress House and Senate and got the debt up to over $10 trillion before the election of Obama.   Now Obama has increased this debt to over $18 trillion debt and climbing rapidly.   Right now the economy is not greatly better.   Some areas are still failing and others have had a rise and now a fall.  I don't know who is going to pay the great debt created by Obama as his latest budget just adds another $4 trillion of debt to the US.   Two years and Obama will be gone.   I hope whomever gets the job, Democrat or Republican or independent, will bring enough knowledge of the problems being created and do something to control our debt and start reducing it.


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## SeaBreeze (Feb 2, 2015)

AZ Jim said:


> If this proposed new tax accomplished nothing more than serving up notice that the fat cats can't hide offshore forever, it will have done a yeoman's job.



I completely agree!


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## BobF (Feb 2, 2015)

I would think also that Obama should make sure our US taxes can also be taken from all making good incomes from their products.   One very large producer of many products in the US was reported to not having to pay taxes at all in recent years.   Sure sounds like a very good place to start closing our debts and getting some money into the reserve status once again.   I would think a lot of the US money problems could be fixed right here and no reason to start taxing money made in other countries first.

I just looked and found that GE did pay some taxes.   Something about 2% over 10 years.    This would bring several billion dollars into the government.   Also wonder how many other companies have gotten away with practically no taxes for years.   Why attack just the ones that make money in other countries.   Plenty right here at home to help a lot.

http://ctj.org/taxjusticedigest/archive/2012/02/press_release_general_electric.php#.VNAvsi6rFcs


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## SeaBreeze (Feb 2, 2015)

Deficit under Obama cut by 2/3, full article here...http://www.politicususa.com/2015/02/02/obama-drops-truth-bomb-gop-since-office-cut-deficit-23.html


"Congressional Republicans continue to pretend like the country is mired in deficit and can’t afford to spend. The reality is that the Republican-backed cuts would do more to strangle economic growth than to launch an economic boom. Obama isn’t calling for a massive spending program. His budget is advocating a complete reversal of the sequester cuts.

For Republicans, the budget isn’t about fiscal policy and economics. To conservatives, the budget is an ideological statement. It doesn’t matter to them what the country or the economy needs. They are beholden to an ideology of dismantling the federal government. The Republicans cries of, “we can’t afford it” have everything to do with an ideological agenda that has a proven history of economic destruction.
​It is good to see this president taking credit for what his occurred during his presidency. It is even more important that he pushes back every single day against Republican myths. The president gets it, and he is going to fight back against the baseless claims of his critics with the facts."


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## AZ Jim (Feb 2, 2015)

I totally agree SeaBreeze.  You have it wired.


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## Don M. (Feb 2, 2015)

The FIRST thing that needs to happen to restore fiscal sanity to this nation is a Complete Revamp of our Tax Codes.  Presently, the codes are about 75,000 pages...99% of which are exemptions for virtually every special interest imaginable.  A sensible and fair code could probably be written on a few dozen pages.  An income of X dollars should require a payment of Y amount of tax...Period!  That, in itself, would probably reduce the amount of tax most people have to pay, while bringing in huge amounts of revenue that currently escapes.  

If things continue the way they are going, the day will come when the US devalues its currency so as to reduce the hundreds of billions being thrown away just paying the Interest on the National Debt.  THAT will screw every low and middle income person in the nation when any savings they may have are reduced, while prices are increased accordingly to compensate for a lower value currency.  This is precisely what has happened in other nations who let their finances go to pot...most recently Argentina.  Another option, which will also screw the working classes would be a European style VAT (value added tax)....and I'm sure that has been discussed behind closed doors in Washington.


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## SeaBreeze (Feb 2, 2015)

*10 Corporate Tax Dodgers*

Ten corporate tax dodgers, including Bank of America, Citigroup, Exxon Mobile, Fed Ex, GE, Honeywell, Merck, Microsoft, Pfizer and Verizon.  http://billmoyers.com/2014/05/29/10-companies-that-dodge-corporate-taxes/


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## WhatInThe (Feb 3, 2015)

Apple taking out a 6.5 BILLION dollar loan ie issuing bonds rather than pull from 178 BILLION pile of cash "stored" over seas.

http://www.foxbusiness.com/markets/...plans-to-sell-as-much-as-65-billion-in-bonds/

Not the first time they did this either.

http://www.bloomberg.com/news/artic...-bond-market-to-scale-biggest-borrowers-ranks


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## oldman (Feb 3, 2015)

Doesn't really matter. The consumer will pay in the end. No company takes on more debt without the consumer sharing in it. The President can tax any U.S. company overseas all he wants, the costs will be added to the final price. Big companies must maintain shareholder equity (value), or the CEO will face termination. Shareholders do not take it lightly when their return drops from 12% to even 8%. I have no proof of this because I have not researched any internet sites, but I do remember hearing on a news channel that more U.S. companies were returning home. Maybe they have already received the message. 

BTW, I am in favor of this move by the President, even if I have to pay a little more for items. Here in PA, the last Governor, Tom Corbett, raised gas taxes here in PA over a three-year period that will make PA the second highest gas taxed state in the U.S. behind California. As the tax takes effect, a small increase every early January, the price at the pump goes up. That's the way it works. Companies pay more, then so does the consumer. The tax money is used to pay for our dying infrastructure and yes, I can see the roads and bridges being repaired, replaced and built. Hiring is taking place, so it is working the way it is supposed to. I am good with it, but when or if gas prices spike up, then we will complain. It's human nature.


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## Jackie22 (Feb 3, 2015)

SeaBreeze said:


> Deficit under Obama cut by 2/3, full article here...http://www.politicususa.com/2015/02/02/obama-drops-truth-bomb-gop-since-office-cut-deficit-23.html
> 
> 
> "Congressional Republicans continue to pretend like the country is mired in deficit and can’t afford to spend. The reality is that the Republican-backed cuts would do more to strangle economic growth than to launch an economic boom. Obama isn’t calling for a massive spending program. His budget is advocating a complete reversal of the sequester cuts.
> ...



A very good article, thanks SeaBreeze.

If the cost of products go up with increase of taxes why didn't that same cost of product go down when there was a decrease in taxes?

Taxes are on profits, not revenue brought in.


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## Don M. (Feb 3, 2015)

SeaBreeze said:


> Ten corporate tax dodgers, including Bank of America, Citigroup, Exxon Mobile, Fed Ex, GE, Honeywell, Merck, Microsoft, Pfizer and Verizon.  http://billmoyers.com/2014/05/29/10-companies-that-dodge-corporate-taxes/



You can add Apple Inc, to that prestigious list.  Apple is probably the biggest corporate Tax Dodger in the nation.  They maintain a rotating staff of about a dozen people in Ireland, so as to qualify for paying little or no corporate tax in the U.S.  Their products are made by virtual slave labor in China, they hide their corporate office in Ireland, and escape 10's of billions in U.S. taxes every year.


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## QuickSilver (Feb 3, 2015)

Jackie22 said:


> *Obama Seeks Tax Changes for U.S. Firms Overseas*
> 
> 
> Source: *Reuters*
> ...



As with everything else..   I believe Obama knows that this will go absolutely nowhere with the new Congress..  BUT.. it IS a very popular idea..  People like it.  Therefore.. I see this as a dare to the GOP to nix it.   Remember... now that the GOP has the majority in both houses, they have to do more than obstruct everything that the President proposes..  They actually have to GOVERN...  In 2016 the American people are going to have to see some results... not just meaningless bills to define rape and restrict abortion,  OR  the 50th+ vote to repeal Obamacare..   They are going to have to see what the GOP vision is to make their lives better..  If they keep up the nonsense, their majority will be very short lived indeed.


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## darroll (Feb 3, 2015)

You would take your company out of this country too if the whole country hated you.

Remember the evil rich CEO's?


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## QuickSilver (Feb 3, 2015)

darroll said:


> You would take your company out of this country too if the whole country hated you.
> 
> Remember the evil rich CEO's?



Oh sure Darroll......  They moved their operations overseas because their feelings were hurt..  lol!!  NOT because they were greedy and looking for someplace to stash their profits.


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## darroll (Feb 3, 2015)

QuickSilver said:


> Oh sure Darroll......  They moved their operations overseas because their feelings were hurt..  lol!!  NOT because they were greedy and looking for someplace to stash their profits.


  <Chuckle>. Some nuts even tried to storm the CEO's mansions. (Bad CEO's don't live in mansions)


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## BobF (Feb 3, 2015)

I think companies have moved in order to make a profit by paying lower wages and benefits and likely getting material less expensive too.   Businesses need profits in order to stay in business at all.

All these US taxes and benefits and wage demands make it hard for some businesses to stay in business.

Example would be the US computer business.   Our wages and benefits made them way to expensive so the final assembly went overseas as well as some of the basic components build.   I do believe that some of our high tech items like CPU's and memories are still done in the US.   At least till they have been proven and then maybe contracted to some overseas plant.   Not sure about that last thought though.


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## Denise1952 (Feb 3, 2015)

SifuPhil said:


> So instead of using taxes to always try to get things done, why not put the unemployed to work on these "Hero" projects (sly reference to Soviet work projects)?
> 
> I'm all for taxing companies that hide their profits overseas, but it shouldn't be a one-time thing - it should be quarterly, as it is for every other U.S. company. They _should_ be penalized, or at least taken to account, for helping to ruin our economy.



That's a good point, if companies are taxed quarterly here, then they should be overseas as well.  Feels to me like we're getting tossed a bone, or a pacifier.


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## darroll (Feb 3, 2015)

BobF said:


> I think companies have moved in order to make a profit by paying lower wages and benefits and likely getting material less expensive too.   Businesses need profits in order to stay in business at all.


Yes that is true...
OSHA bugged us constantly about putting safety harnesses on our ladders and many other things. Where I live the city governments taxed the companies until they almost went out of business. Del Monte was taxed for over a million dollars for accidentally flushing beans down the sewer pipes.


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## Denise1952 (Feb 3, 2015)

BobF said:


> How is the US so much better now than it was when he entered the Presidential office.    Bush would have left with mid $70 trillion debt showing, but for his last two years Pelosi and Reid got control of the Congress House and Senate and got the debt up to over $10 trillion before the election of Obama.   Now Obama has increased this debt to over $18 trillion debt and climbing rapidly.   Right now the economy is not greatly better.   Some areas are still failing and others have had a rise and now a fall.  I don't know who is going to pay the great debt created by Obama as his latest budget just adds another $4 trillion of debt to the US.   Two years and Obama will be gone.   I hope whomever gets the job, Democrat or Republican or independent, will bring enough knowledge of the problems being created and do something to control our debt and start reducing it.


Leave it to me to get confused.  Bush had to debt to 70 trillion, but are you talking the others amount add on to that?  18 trillion is a lot less then 70.  Are those even real numbers, I mean, I didn't know there was that much money in the world.  Doesn't anyone pay their debts, LOL!!


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## BobF (Feb 3, 2015)

nwlady said:


> Leave it to me to get confused.  Bush had to debt to 70 trillion, but are you talking the others amount add on to that?  18 trillion is a lot less then 70.  Are those even real numbers, I mean, I didn't know there was that much money in the world.  Doesn't anyone pay their debts, LOL!!



You are right, it should have been $7 trillion.   Not sure how that extra 0 got in there.    So I will go see if I can correct the error.
..................
Fixed.    Thanks for the notice so I could adjust the facts.


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## Denise1952 (Feb 3, 2015)

BobF said:


> I think companies have moved in order to make a profit by paying lower wages and benefits and likely getting material less expensive too.   Businesses need profits in order to stay in business at all.
> 
> All these US taxes and benefits and wage demands make it hard for some businesses to stay in business.
> 
> Example would be the US computer business.   Our wages and benefits made them way to expensive so the final assembly went overseas as well as some of the basic components build.   I do believe that some of our high tech items like CPU's and memories are still done in the US.   At least till they have been proven and then maybe contracted to some overseas plant.   Not sure about that last thought though.



I do believe it isn't all out of greed as well Bob.  Mainly because I think there are a lot of people trying to survive, not just money mongers wanting more.  What is it in human nature that makes us want to look at the worst of the bunch.  Just like one kid out of a family gets in trouble and the whole family is blamed, automatically.


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## Denise1952 (Feb 3, 2015)

BobF said:


> You are right, it should have been $7 trillion.   Not sure how that extra 0 got in there.    So I will go see if I can correct the error.
> ..................
> Fixed.    Thanks for the notice so I could adjust the facts.



Oh ok, well, that just shows I'm not to smart about the amount we owe  Good post by the way


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## Josiah (Feb 3, 2015)

Here's a link to the recent New York Times editorial on President Obama’s fiscal 2016 budget.

http://www.nytimes.com/2015/02/03/opinion/president-obamas-new-budget.html


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## BobF (Feb 3, 2015)

We will have to wait and see just how well Obama will respond to the Republican Congresses offers.   It is well understood that the Republican Congress is not happy with the debt of $18 trillion and growing we now have and will likely try to not add to that number at all and likely want to reduce that debt a few trillion if they can.   Time will tell what is going to happen.   I am sure Obama will try hard to make sure the Democrat running for President will get all the help he can offer.   This will be a political event coming so whether it is true or just political maneuvering remains to be seen.   And that means to watch both the Democrats and Republicans as both parties will want to win this political fight.


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