http://www.bloomberg.com/apps/news?p...QoE&refer=home
This is not at face value a bad thing, but only at face value. Currently many companies use these legal loopholes to avoid the US's relatively high corporate tax rates. Closing these loopholes only seems right in that it uphols the rule of law, but it will be hard to avoid the observation that this will also be viewed as a huge tax increase. This would not bother me so much if the administration coupled this with a corporate tax decrease, but I highly doubt this will ever happen.
The danger is that companies
may leave America. It is a flattening world, and with modern communications corporations can easily move shop if they view remaining in the US is cost prohibitive. The infrastructure is in place globally that in the future I believe nations are going to have to compete for businesses, just like businesses compete for consumers. Ireland would LOVE to have more busineses.
But the tax implications aren't what bother me the most.
The most dangerous part of this mess is the following:
Quote:
Obama also would shift the burden of proof to individuals when the IRS alleges assets are being hidden in certain offshore bank accounts, the White House said in a statement.
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So now we will be guilty until we prove ourselves innocent? Another hole is punched through our rights, and the IRS becomes even more gestapo-like. Remember when we all thought Bush was the fascist?