President Barack Obama plans changes to tax policy certain to be unpopular with corporations with international divisions and individuals who use tax havens.
Obama’s two-part plan, which he is slated to unveil at the White House on Monday, also calls for 800 new federal tax agents to enforce the system.
The president’s proposal would eliminate some tax deductions for companies that earn profits in countries with low tax rates, as well as consider U.S. citizens who use tax havens in the Bahamas or Cayman Islands guilty of violating U.S. tax laws.
It’s going to raise $21 billion a year in revenue, minus unintended consequences.
Or, to put it in perspective, 1/100th of the new deficit spending the President and the Democrat-controlled Congress has incurred. Not counting forthcoming cap-and-trade plans and national health care bills. And all unintended consequences forthcoming.
Full disclosure: This change will affect me because I am a capitalist Fat Cat who bought a couple hundred bucks’ worth of stock in a Taiwanese chipmaker, and I get to knock off the taxes I pay to the government of Taiwan. You know who else is a corporate Fat Cat in this scenario? Anyone with an International Fund selection in a mutual fund, 401(k), or retirement plan. You know, you.
Candidate Obama promised not to raise taxes on families making less than $250,000 a year or whatever. President Obama, though, has a different scale for determining feline weight.