“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…. Currently, U.S. firms are allowed to defer paying taxes on profits earned overseas if they plow those profits back into their foreign subsidiaries…. A central provision would prohibit companies from deducting expenses supporting their overseas operations until they pay taxes on offshore profits.” (Reuters, Monday)
Corporations don’t pay taxes; they collect them.
FEE Timely Classic
“Corporations Should Pay Higher Taxes? It Just Ain’t So!” by Roy E. Cordato
