During his campaign, Obama announced a plan for tax reform, particularly pinpointing earnings that us companies take abroad or off shore. Big industry has put on a quiet full court press with the usual promise that this will hurt local jobs.
Business Week points out (Oct 26) that the arguments are largely fictional. For example the ostensible corporate tax rate is 35%. Big anti reform lobbyists GE and Proctor and Gamble pay 5.5% and 25% respectively, Currently IRS is suing Proctor and Gamble for allegidly illegally using the a Barbados subsidiary as an "abusive tax shelter."
Business Week opines, "the companies' tactics and past IRS battles raise troubling questions."
Way to go Business Week!
I read Business Week for my weekly news magazine because, representing the most liberal wing of the business community, it seeks to restrain the most barbaric industry practices that might really threaten the capitalist system. ...and they know and understand that world. They have been railing against ridiculously high executive salaries for year.
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