Obama's Plan To Tax Overseas Earnings Draws Scrutiny

Most American corporations are international, as a whole they account for about $2 trillion dollars in overseas accounts. Money that is not being taxed by the Government of the United States. 

President Barack Obama has recently proposed substantial changes to the tax code. In hope of utilizing part of the sales revenue of US corporations for the benefit of the citizens. While the majority of the government agrees to this there is a substantially variation on the ideology to accomplish this. Obama and the democratic party suggest taxing 14% on the money regardless of it being kept overseas while the Republicans with their efforts being previously made to accomplish this had the same concept but with a lower tax rate. This makes sense because corporations are being taxed a very little amount of their profits overseas by taking advantage of the low tax rates of other countries such as Luxembourg and Ireland. While this is legal the Government believes that these corporations being American should pay tax to their home country, the U.S. hence the  aforementioned efforts.

Corporations moving profits overseas has been going on for a really long time. Taking advantage of tax breaks and low tax rates of other countries while being legal it is not the best of their ethics. This article of many out there really catches my attention and it should be relevant to you as well because this affects us in many ways. I'm very neutral about the subject only because of the impact that this would have on the way companies behave and act if this came into effect. It gives the reader a lot to think if one hypothesizes the chain of effects that this would have on the citizens of the U.S. and not just the corporations.


Main Source: http://www.npr.org/2015/02/12/385471616/obamas-plan-to-tax-overseas-earnings-draws-scrutiny