Tuesday, May 5, 2009

Obama Pushes ‘Crackdown’ on Legal Tax ‘Havens’

WSJ and CNBC’s Erin Burnett point out U.S. has higher corporate tax rates than other countries.

President Obama held a press conference on May 4 to detail a “far-reaching crackdown on offshore tax avoidance, targeting many U.S.-based multinational corporations and wealthy individuals,” according to The Wall Street Journal.

The Journal said on May 4 that Obama would like to change the way offshore subsidiaries are treated by law ending practices known as “deferral” and “check-the-box.”

“The plan takes aim at a range of financial practices that have combined to erode the U.S. tax base in recent decades. As money has become more readily transferable – and aggressive tax planning more widespread – it has become easier for companies and individuals to take advantage of low taxes as well as lack of transparency in many offshore havens,” the Journal said.

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