In typical fashion, the issue of "inversions" has come to the fore in Washington. Inversions are transactions whereby and American corporation acquires a foreign corporation and uses the deal to change its country of incorporation away from the USA and the high American level of corporate taxation. The issue of American taxation of profits earned by American corporations in other countries has been on the table for many years. I have written about it repeatedly over the last five years. The current tax code greatly reduces the cash available for investment in the USA and reduces American economic growth in a substantial way. Couple this with two other facts 1) the USA has the highest corporate tax rate in the world and 2) the USA is the only first world economy that taxes profits made outside the country, and you find that there has been an urgent need for action on the corporate taxation front for at least the entire time president Obama has been in office.
So, over the last five and a half years, what has been done? The answer is simple: NOTHING. And over the last five and a half years, what has the president proposed ought to be done. The answer is the same: NOTHING. Obama left this issue to fester and undermine the economy.
Lately, however, the issue of corporate taxes has been on the front page because there have been at least two high profile companies that have used inversions to leave America and its high taxes behind. Now, Obama is out there speaking about the topic. What did he say? In short, he said that he "did not care if the practice is legal" because it is "wrong". Obama also called those who use the inversion process "unpatriotic".
Since this is Obama, he offered no solution to the problem. Obama has no plan or even guideline as to how he would like to see the tax code modified. Nope, Obama just wants to denounce those evil corporations who are doing exactly what the law allows.
I just read an article from the Hill in which we are told that because Congress has done nothing, Obama may have to act alone on this issue. Amazing! For five and half years, Obama ignores the issue and does nothing. Then last week, as Congress is about to leave on its summer recess, Obama makes a speech denouncing the inversion process. One week later, Obama is already out there with his talking points in which he blames Congress for inaction and says he will have to act alone.
The truth is quite different. If Obama were actually a leader, he would have come forward with a proposed solution to this problem long ago. Indeed, even if there were no White House proposal, there would, at least, have been senior representatives of the Treasury Department meeting with the relevant congressmen and senators so that some sort of proposal could be put together. But that would mean actually doing the work assigned to the president. Obama does not have time for work; he is too busy going to fund raising events.
The issue of corporate taxation is extremely important to the future of the USA. It is not sexy, but it is damned important. It would be a terrible thing if this issue like so many others gets swept into the partisan void where Washington fights over who has the power to do what rather than over what is the best course for America.
We really need a leader. We surely do not have one in Obama.
So, over the last five and a half years, what has been done? The answer is simple: NOTHING. And over the last five and a half years, what has the president proposed ought to be done. The answer is the same: NOTHING. Obama left this issue to fester and undermine the economy.
Lately, however, the issue of corporate taxes has been on the front page because there have been at least two high profile companies that have used inversions to leave America and its high taxes behind. Now, Obama is out there speaking about the topic. What did he say? In short, he said that he "did not care if the practice is legal" because it is "wrong". Obama also called those who use the inversion process "unpatriotic".
Since this is Obama, he offered no solution to the problem. Obama has no plan or even guideline as to how he would like to see the tax code modified. Nope, Obama just wants to denounce those evil corporations who are doing exactly what the law allows.
I just read an article from the Hill in which we are told that because Congress has done nothing, Obama may have to act alone on this issue. Amazing! For five and half years, Obama ignores the issue and does nothing. Then last week, as Congress is about to leave on its summer recess, Obama makes a speech denouncing the inversion process. One week later, Obama is already out there with his talking points in which he blames Congress for inaction and says he will have to act alone.
The truth is quite different. If Obama were actually a leader, he would have come forward with a proposed solution to this problem long ago. Indeed, even if there were no White House proposal, there would, at least, have been senior representatives of the Treasury Department meeting with the relevant congressmen and senators so that some sort of proposal could be put together. But that would mean actually doing the work assigned to the president. Obama does not have time for work; he is too busy going to fund raising events.
The issue of corporate taxation is extremely important to the future of the USA. It is not sexy, but it is damned important. It would be a terrible thing if this issue like so many others gets swept into the partisan void where Washington fights over who has the power to do what rather than over what is the best course for America.
We really need a leader. We surely do not have one in Obama.
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