Some of Barack Obama's budget proposals have major implications for US companies operating in Ireland if enacted in their raw state. Not alone are they likely to be injurious to US investment in Ireland but they may damage the profitability of individual companies. Multinational corporations can defer paying U.S. taxes on their overseas profits until they return them to the USA. Such transfers may not happen for some years. Efforts to tackle tax evasion are laudable however proposals to reform U.S. corporations' ability to defer foreign earnings may backfire.
The combined federal/state corporate rate in the US is nearly 40 percent. The Obama administration must reduce this to boost employment.
The combined federal/state corporate rate in the US is nearly 40 percent. The Obama administration must reduce this to boost employment.
The following is an excerpt from U.S. Treasury Secretary Tim Geithner's Written Testimony to the House Ways And Means Committee Hearing - As Prepared for Delivery, March 3, 2009
...The Budget also seeks to close the "tax gap" by tackling tax shelters and other efforts to abuse our tax laws, including international tax evasion efforts.
The Budget addresses the use of offshore structures and accounts by U.S. corporations and individuals to avoid and evade U.S. taxes. Over the next several months, the President will propose a series of legislative and enforcement measures to reduce such U.S. tax evasion and avoidance.
Some proposals will focus on the rules in our tax code that put those who invest and create jobs in the United States at a disadvantage. We will propose rules to both reform U.S. corporations' ability to defer foreign earnings and deter high income individuals and corporations from using tax havens to avoid taxation. ..Mondovisione
4 comments:
So far the FDR approach does not seem to be working. The stock market is still taking a nose dive. I'm thinking this may take many countries working together to solve this problem.
I agree. Ireland's tax returns announced today were horrendous. A savage mini budget will follow at the end of the month. The UK is in a mess. Similarly many of the countries in Eastern Europe could default on loans.
Possibly the US, China, Germany, France and the UK could hatch a solution. At present Germany appears to be reasonably strong financially. It introduced a car scrappage scheme to help the auto industry. Car sales have benefited enormously.
Until the banks are secure lending will continue to be weak. Also the markets distrust the politicians.
How bad are things where you are? I keep trying to get reference points from what other people are telling me. You told me you felt fortunate you were securely employed. very curious
Irish unemployment has doubled in one year to 10.4%. The month-on-month increase in the number signing on in February was the second highest ever at 26,576. This brought the number of people signing on in February to 354,437. It could hit 450,000 by the New Year. These figures include part time workers and casual workers.
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