Snappy newsletters. Simple Facebook sharing. Spirited comments. Sweet features are waiting… GET THEM NOW!

Hot on Facebook
Man Tries to Order Priciest Starbucks Drink Ever Total cost: $23.60 »

Obama Attacks Tax Havens to Save Health Care: Reich

By Kevin Spak,  Newser Staff

Posted May 5, 2009 4:05 PM CDT

(Newser) – Offshore tax havens may not be fair, but they’ve been around for decades. So why is President Obama taking them on now, Clinton Labor Secretary Robert Reich asks in Salon. It’s not to try to keep jobs here, as the White House claims; the move might even drive jobs away. It’s far more likely this is a sly strategic move in the universal health-care fight.

Obama will need a lot of corporate muscle on his side to push through health-care cost reform. Many companies want to help, but fear angering major providers. Obama can use the offshore tax havens as a bargaining chip, leaving them alone in exchange for cooperation. Alternatively, he can go ahead with his plan, and use newfound revenues—an estimated $295 billion—to pay for care.

Robert Reich, Labor Secretary during the Clinton administration, gives his commencement speech during graduation ceremonies at California State University-Fullerton in this file photo.
Robert Reich, Labor Secretary during the Clinton administration, gives his commencement speech during graduation ceremonies at California State University-Fullerton in this file photo.   (AP Photo)
President Barack Obama speaks about tax reform at the White House yesterday.
President Barack Obama speaks about tax reform at the White House yesterday.   (AP Photo)
President Barack Obama makes a unexpected visit to the White House pressroom Friday.
President Barack Obama makes a unexpected visit to the White House pressroom Friday.   (AP Photo)
« Prev« Prev | Next »Next » Slideshow

The president needs as many bargaining chips with the rest of corporate America as possible. The proposed crackdown on foreign tax avoidance is one such chip. - Robert Reich

« Prev« Prev | Next »Next » Slideshow
To report an error on this story, notify our editors.
A snapshot of the day's best news stories.
 
COMMENTS
Showing 3 of 7 comments
Derni
May 6, 2009 12:28 PM CDT
Big business will find some other loop hole in the laws so they can save or hide money if the overseas acccounts are taken away-they employee lawyers to find ways to do those things-but then again-they pay big bucks to CONGRESS so they will create more loop holes!
PosterNutbag
May 6, 2009 2:16 AM CDT
If this makes businesses want to leave the US, I say good riddance, plenty of forward-thinking businesses will sprout in their absence.
PosterNutbag
May 6, 2009 2:13 AM CDT
Time for the daily intellectual-rehabilitation therapy exercise for our friend paul123. What has people enraged, paul, is the fact that practices which were once ILLEGAL, NEVER ETHICAL, and NEVER MORAL, were at some point DECLARED LEGAL, by a politician who was effectively OWNED by the Super Rich. In this case, the fraud became legal under Bill Clinton, and now Obama is trying to close the loopholes.

More Newser Stories

White House Takes Aim at Offshore Tax Dodges

Obama Losing Super PAC War

Under Obama, a Force of Killer Drones Evolved

Obama Won't Apologize for Pakistan Strike

I Want 20% Less Spending on Swag: Obama


NEWS FROM OUR PARTNERS
Other Sites We Like:   24/7 Wall St.   |   Betty Confidential   |   BuzzFeed   |   Cracked   |   Fark   |   Timelines   |   The Frisky   |   Geek Sugar   |   NewsOne