Citizens for Tax Justice has released:
On May 4, President Obama proposed several measures to address overseas tax avoidance and tax evasion that are steps in the right direction but could be far stronger. For example, the President proposes to limit the rules allowing corporations to “defer” their U.S. taxes on foreign income, but he would largely exempt technology and pharmaceutical companies from even the weak limits he proposes, instead of simply repealing “deferral” altogether. He proposes sensible steps to reduce abuses of the foreign tax credit and the “check-the-box” rules that allow multinational corporations to cause their subsidiaries’ income to “disappear.” His proposals to crack down on the use of secret accounts in offshore tax havens are also positive steps but could be much stronger.
While the President’s proposals are relatively modest, the corporate community claims that these measures are unfair and would limit economic growth in America. The corporate lobbyists and spokespersons are wrong. Here are some of the frequently repeated myths, and the actual facts, about offshore tax abuses and what the President and many lawmakers want to do about them.
