Abolishing tax break weakens US competitiveness
Shapiro report shows taxing foreign profits for US companies could weaken the country's competitiveness and investments and lead to domestic job losses
A report by Robert Shapiro, a former Clinton administration economic aide,
has revealed as many as 2.2m US jobs are at risk over an appeal of corporate tax
deferral law.
The provision allows companies to delay paying taxes and future investments
in plant, equipment and property could fall by as much as $84.2m (£53m),
according to
washingtontimes.com
In an effort to crackdown on US companies exploiting corporate tax loopholes,
the Obama administration is seeking to limit tax deferral rules.
Bruce Mehlman, TCC executive director, said the White House should be
credited with numerous schemes which advocate investment, however, limiting the
tax deferral initiative is to the detriment of US businesses.
‘We cannot expect to lead the world in high-tech by marrying the world’s best
innovation infrastructure with the world’s most confiscatory corporate tax
structure,’ he said.
Further Reading:
US
foreign tax credit claims skyrocket
US
audit fees rise despite recession