Corporate Tax Crackdown. Obama hits tax havens.

President Obama has initiated a tug-of-war by proposing to reform International tax codes. Tightening loopholes, and addressing the issue of tax havens abroad is the hot topic of the week, and Corporate America is fighting back.

Obama wishes to simplify tax codes, and the plan seems to have a two-fold underlying purpose. Firstly, it would seem that he wishes to stimulate job creation at home, and secondly to finance proposed programs through tax revenue. Closing questionable loopholes means that some of the current outsourcing will be less lucrative.

Corporate America is not taking this sitting down. Early out was the rebuttal and accusation that Obama's plan would cause corporations to lose a global competitive edge, and that countless jobs will be lost.

This may turn into a battle of wills, and it may get a little messy. And yet, the subject interests me for another reason. It will be fascinating to see how the Administration handles the corporate world in a conflict of interest such as this. Why? Because, there are lobbying powerhouses to be dealt with in the future, and many of them have their long arms woven through our national health industry.

Are corporations crying wolf? If jobs head back home, will they be able to compete with the low wages and costs of other countries? Will they lose the competitive edge? Give this short post consideration in your personal opinion.

Will Obama succeed in his tax reform proposal? Can it, and/or should it happen?





Tamera Daun©




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