Tax loopholes are legal gaps in the tax laws. The corporations that take advantage of them are not violating the law as Obama is implying in the video Jeddbird supplied. Tax evasion is a differnt issue.
If congress wishes to change the law, so be it. However, the effect is never one sided. Obama is stating that they will remove the "incentives" to locating jobs overseas and increase the incentives for locating them here. If that is done by taxing a corporation importing a product (a service in this case) it isn't called an "incentive", it's called a tariff
and it's a threat to your
What Obama is proposing is to increase the corporate tax rate on an overseas subsidiary from 2% to 35% (the current corporate rate for domestically earned income). How exactly does that provide incentive to return
to the US? The corporation will relocate it's operations in Buffalo, NY or Scranton, Pa so that it can pay more tax and pay more for labor as well? Hmmmm....I don't think so.
The corporation will stay overseas where it will continue to save on the labor. If the profits are insufficient, they will sell the business to an overseas entity, pocket the cash, and contract for the service. Then not only will the jobs stay overseas, the profits will also stay in the foreign nation. Those jobs are overseas because the labor is cheaper. They will never be brought back here until the labor markets level out.
Obama will only end up destroying American profits earned by American investors. Also, plan on your customer service levels geting drastically reduced--you may hate talking to Indians in Bangalore about your credit card account but soon you'll either be on hold for three days or not getting service at all.
See it for what it is...a tax revenue raising measure. The last line of this Times article makes it clear:http://www.nytimes.com/2009/05/06/busin ... 06tax.html
If you want to see jobs created in the United States of America in mass quantities, eliminate all corporate tax
. Then tax dividends at the capital gains rates. It will increase investment and jobs and it will also destroy the central banking hold the government has on our souls.