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FOR IMMEDIATE RELEASE - APRIL 10, 2013
President Obama’s Budget: The Corporate Tax Loophole “Loophole”
Washington – In his budget, the President proposes measures to “crack down on opportunities to shift profits on intellectual property to low-tax countries and restrict the ability of companies to claim interest deductions while deferring U.S. tax on the associated income. The Budget also proposes to disallow deductions for moving production overseas, while providing a new tax credit for bringing production back to the United States.”
The document also referenced the President’s previous proposal for a minimum corporate tax on foreign earnings, without any further indication on the details.
“Members of the Financial Accountability and Corporate Transparency (FACT) coalition – including small business, labor, faith and human rights groups – support closing offshore tax loopholes as a priority in any budget proposal. However, closing these loopholes in a way that would raise no new revenues, as the President proposes, reflects a step in the wrong direction,” said Nicole Tichon, who directs the FACT coalition and Tax Justice Network USA.
“While the Administration has continued to propose closing offshore tax loopholes each year, the notion that the revenue raised should be fed back to the same large, multinational corporations flies in the face of the interests of voters, small businesses and common sense. In his remarks, the President opened with the fact that ‘corporate profits are at an all-time high,’ yet these same corporations are getting a free pass at the end of the day. They want all of the benefits and advantages of doing business here, but none of the responsibilities.”
For a FACT sheet on offshore tax haven abuse by the numbers, click here.
Read the new survey of small businesses that demonstrates support for closing offshore tax loopholes here.
Watch clips on the territorial tax system and corporate tax dodging from “We’re Not Broke” here.
Read Corporate Tax Dodgers – 2008 – 2010 – by Citizens for Tax Justice.
Read Offshore Revisited – A TJN Report on Offshore Wealth by James Henry.
Watch “Global Wealth Inequality - What You Never Knew You Never Knew here.
One hundred national, state and local groups have signed on to support the Cut Unjustified Tax Loopholes Act as the Senate budget debate heats up.
Read the letter to lawmakers here: