Tim Geithner discussing closing tax loopholes and making sure the IRS gets every penny it deserves is beyond hypocritical and preposterous; it's outright hysterical!
Remember: A tax cheat was confirmed, the tax cheat hired a lobbyist and violated the ethics rule, another lobbyist was hired that violated the ethics rule, a tax cheat withdrew her nomination, another tax cheat withdrew his nomination. Then a nominee violated House ethics rules and is married to a tax cheat. Then another tax cheat was nominated! Then another nominee withdrew over skeletons in the closet. And then another nominee had tax issues.
President Obama's plan would eliminate certain tax deductions for companies and consider U.S. citizens who use tax havens such as the Bahamas or Cayman Islands guilty of violating tax laws.
From Fox News:
"The way to make American businesses competitive is not to let some citizens and businesses dodge their responsibility, while ordinary Americans pick up the slack. Unfortunately, that's exactly what we're doing," Obama said.
"If financial institutions won't cooperate with us, we will assume that they are sheltering money in tax havens and act accordingly," he continued.
Under the plan, companies would not be able to write off domestic expenses for generating profits abroad. The goal is to reduce the incentive for U.S. companies to base all or part of their operations in other countries.
The current law, Obama said, "says you should pay lower taxes if you create a job in Bangalore, India, than if you create one in Buffalo, New York. "
U.S. Chamber Opposes Administration’s Tax Proposal
WASHINGTON, DC—The U.S. Chamber of Commerce Chief Economist Dr. Marty Regalia issued the following statement today in response to the administration’s announcement that it is seeking to reform international tax provisions:
“This issue is about jobs in America and the competitiveness of American companies. Deferral has been mischaracterized as a ‘tax break’ but is actually a vital mechanism providing relief for American businesses from double taxation.
“The United States is the only major industrialized country which double taxes the overseas earnings of our companies. Since other countries don’t subject their companies to double taxation, U.S. companies need deferral to stay competitive in the global marketplace.
“When you limit deferral, you limit the ability of U.S. companies to compete, you impede growth in the U.S. economy, and you cause the loss of jobs – both at the companies directly impacted and companies in their supply chains.
“Tax increases that hurt U.S. companies’ global competitiveness hurts U.S. workers here at home. A huge tax hike on U.S. employers is not the way to stimulate our economy. Congress should reject this approach.”
The U.S. Chamber is the world's largest business federation representing more than 3 million businesses and organizations of every size, sector, and region.