US corporate tax plan could suit foreign rivals

The US’ plan to tax overseas corporate profits could drive businesses to
redomicile and, in turn, make it easier for them to be acquired by European
competitors, according to the chief of inter-dealer broker GFI.

Chief executive and accountant Michael Gooch warned that US president Barack
Obama’s plan to tax overseas corporate profits could push companies out of the
country. This would give European businesses a leg-up in acquiring US
competitors, reported the FT.

‘Many many US companies will look for ways to redomicile outside of the US
and that will give foreign companies a huge advantage in the acquisition of
American companies,’ said Gooch.

He added that he was optimistic the US government would change its mind.

Further reading:

US Treasury defends Obama tax
reform plans

Obama proposes to double tax
enforcement budget

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