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TUESDAY, NOVEMBER 24, 2009
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7

Firms Fight Overseas Tax Changes Worth Billions

Last year's sheltered earnings could have brought US $20B

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(Newser) – Overseas tax reform plans in the works under President Obama would put a serious squeeze on top firms, which under current law can store foreign income abroad indefinitely, reports the Wall Street Journal. Ten of the biggest companies earned $58 billion in 2008 that’s now sheltered overseas—money that could bring $20 billion in tax revenue.

The administration is hoping a change in the law could pull in some $210 billion between 2011 and 2019, and Obama’s 2011 budget calls for “reform.” But 200 firms have written to Congress opposing the move. “This one hits the bottom line of companies more than any other issue right now,” said a tech lobbyist. "We have to defeat it."

Jeffrey Kindler, chairman and CEO of Pfizer, speaks at a news conference Jan. 26, 2009 in New York. Overseas sheltering cut Pfizer's effective tax rate by some 20% last year, the Journal says.
Jeffrey Kindler, chairman and CEO of Pfizer, speaks at a news conference Jan. 26, 2009 in New York. Overseas sheltering cut Pfizer's effective tax rate by some 20% last year, the Journal says.   (AP Photo/Mark Lennihan)
Treasury Secretary Timothy Geithner pauses as he addresses a breakfast meeting of the Economic Club of Washington, Wednesday, April 22, 2009, in Washington.
Treasury Secretary Timothy Geithner pauses as he addresses a breakfast meeting of the Economic Club of Washington, Wednesday, April 22, 2009, in Washington.   (AP Photo/Pablo Martinez Monsivais)
President Barack Obama makes remarks on housing refinancing, Thursday, April 9, 2009, in the Roosevelt Room of the White House. At left is Treasury Secretary Timothy Geithner.
President Barack Obama makes remarks on housing refinancing, Thursday, April 9, 2009, in the Roosevelt Room of the White House. At left is Treasury Secretary Timothy Geithner.   (AP Photo/Gerald Herbert)
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7 comments
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Doctor_Zaius
Apr 22, 09 11:33 AM CDT
I wish I could rent a PO Box in Barbados and not pay any taxes. Too bad for you corporations, pay your taxes. Reply
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woody66
Apr 22, 09 11:55 AM CDT
Amen Doc. Reply
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TerrifiedCitizen
Apr 22, 09 1:00 PM CDT
See dear lobbyists... this is the reason we don't want you around. How can long-term abuses and stealing by big business ever be slowed for the benefit of the economy and the nation with politicians hanging from your deep pockets? Reply
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LibertyMan
Apr 22, 09 2:00 PM CDT
Oh how stupid and uneducated these leftie loons on Newser are. Tax these companies for profits MADE overseas? Hmm....let's see, I have a company operation making profits overseas and America has second HIGHEST corporate tax rate on the planet. Shareholders to CEO: MOVE Company overseas. Take middle class white collar jobs with you. Leave behind blue collar and unemployed idiots like the leftie posters on Newser so they have more time to work for MoveOn.org. Your anti business world view just tells me that you idiots can't hold jobs, are disgrunted former employees who were high maintence and low performing. The kind of lefties who bash job creaters and tax PAYERS. Why do corporations move overseas? HIGH Corporate Taxes and repressive government regulations. At least in foreign countries like France and Japan, the governments work to HELP business compete against foreign companies. here, P-BO takes delight in bashing industries he knows nothing about. Keep on and this will be a land of poor and super rich only. You and the Dems are killing the middle class. Reply
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IN RESPONSE:
SPH
Apr 22, 09 3:02 PM CDT
I doubt these companies are willing to lose their largest and most lucrative markets in the US when they move overseas....Your reasoning is weak and poorly thought out.....
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