Wednesday, May 06, 2009

Obama Plans to Curb Tax Havens and Overseas Job Transfers

On Monday President Obama announced that his administration intended to crack down on businesses and wealthy individuals who avoid paying taxes by transferring their money or jobs overseas. His plan, which he claims would raise $210 billion in taxes over the next 10 years, was announced on the White House blog and is described in greater detail in this White House press release. For a newspaper article on this topic, see the Washington Post.

You can also find the details of the plan on the Treasury Department's website. President Obama and Treasury Secretary Timothy Geithner plan to reform the tax code by removing tax incentives for overseas investments and using some of that money to provide tax credits for "research and innovation in the United States." They also plan to crack down on tax havens for individuals and corporate subsidiaries. Both the White House and Treasury press releases cite a January 2009 U.S. General Accounting Office report stating that of the 100 largest U.S. corporations, 83 have subsidiaries in tax havens. This 63-page report is actually dated December 2008, and you can find it on the GAO's website.

For further resources, see our guide to Tax Forms and Information.

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