Obama reveals plan to close corporate tax loopholes

US president Barack Obama and treasury secretary Timothy Geithner has
released details of a plan aimed at closing corporate tax loopholes.

In 2004 – most recent year for which data is available, US. multinationals
paid about $16bn of tax on approximately $700 bn of foreign earnings, according

83 out of the 100 largest US companies have operations in low tax
jurisdictions, according to a Government Accountability Office report.

‘It’s a tax code that says you should pay lower taxes if you create a job in
Bangalore, India, than if you create one in Buffalo, NY,’ said Obama.

The reforms are estimated to raise $210bn over the next 10 years, $103.1bn of
which by removing tax advantages for creating jobs and investing in business
expansion overseas, including the reforming of tax deferral rules.

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