- For those determined to wring out every drop of “waste, fraud and abuse” from the federal budget, blocking and restricting tax evasion offers the potential of boosting revenues by multiples of billions. One tax break that looks to be a particularly inviting target, for example, allows companies to avoid paying taxes on overseas income until they bring the money back to the US. Obama and others have attacked this break as a federally subsidized incentive to invest abroad. If left intact, this provision will cost the federal government $56.4 billion from 2008 to 2012, according to Congressional tax analysts.
The left is at it again. Obama has phrased it well. He is looking to remove tax loopholes. Loopholes. That is a loaded word. A loophole denotes an intention to cheat the government out of its money. In fact, these overseas accounts are legal. Money made overseas is taxed overseas. In order to provide a little tax relief for US businesses, the US government does not tax this money made overseas until it comes back into the country. Thus, the overseas accounts.
It should be noted that foreign firms are largely credited all the taxes they pay in the United States. It would be debilitating to US competition in foreign markets if we then had to add into costs a double taxation of goods and services.
Make no mistake. The Left and Obama believes that your money is actually their money.
But this is much to complicated to explain to the average American – instead, lets stoke some class envy and greed to continue wealth redistribution.