But the Republicans, of course, disagree.

by lestro

He talked about it during the campaign, but who knew he’d actually do  it?

President Barack Obama will flesh out a proposal included in his February budget blueprint seeking to curb the practice of parking foreign earnings in offshore tax havens indefinitely.  By some estimates, $700 billion or more in U.S. corporate earnings have accumulated in overseas accounts in recent years.

The plan to be announced Monday will go further. It aims to change the legal treatment of offshore subsidiaries and structures that companies have used to avoid not only U.S. taxes, but taxes in other developed countries as well. In addition, the administration will strive to tighten rules that have encouraged thousands of Americans to open offshore bank accounts in an effort to duck U.S. taxes.

The plan would increase information reporting and tax withholding as well as penalties, and make it harder for foreign account-holders to win cases in court. The administration promised new enforcement tools to crack down on tax-haven abuse.

For too long companies claiming to be “American” have avoided paying taxes and that has to stop.

But the Republicans, of course, disagree.

A senior Republican aide termed the proposals a “revenue grab,” predicting they could end up driving more corporate operations overseas. Some or all of the changes could become fodder for broader tax reform next year.

“If rules are changed on tax deferral and we are taxed in the U.S. on non-U.S. profit, this significant additional U.S. tax cost would adversely impact our ability to invest and grow our business in the U.S… and to compete against our foreign competitors who are not subject to this U.S. tax,” said John Earnhardt, a Cisco Systems Inc. spokesman.

No company that finds a way to avoid its taxes – especially if it does it by somehow officially locating itself overseas – is an American company.  Period.

and despite what a Republican will tell you, paying taxes – you know, supporting the government and the country – is patriotic.  Finding ways to fuck over your fellow Americans by not paying taxes (and forcing them to pay more because of it) is not.

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