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Washington - Obama Proposes 14 Percent Tax On U.S. Companies' Untaxed Foreign Earnings

Published on: February 1, 2015 09:25 PM
By: Reuters
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File: President Obama as he signed a bill at Jan. 17, 2014. (Official White House Photo by Lawrence Jackson)Washington - President Barack Obama’s fiscal 2016 budget would impose a one-time 14 percent tax on some $2 trillion of untaxed foreign earnings accumulated by U.S. companies abroad and use that to fund infrastructure projects, a White House official said.

The money also would be used to fill a projected shortfall in the Highway Trust Fund.

“This transition tax would mean that companies have to pay U.S. tax right now on the $2 trillion they already have overseas, rather than being able to delay paying any U.S. tax indefinitely,” the official said.

“Unlike a voluntary repatriation holiday, which the president opposes and which would lose revenue, the president’s proposed transition tax is a one-time, mandatory tax on previously untaxed foreign earnings, regardless of whether the earnings are repatriated.”

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In the future, the budget proposes that U.S. companies pay a 19 percent tax on all of their foreign earnings as they are earned, while a tax credit would be issued for foreign taxes paid, the official said.



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 Feb 02, 2015 at 04:17 PM Rafuel Says:

Sure, tax them all, the more successful, the more painful the tax. Why, we don't need an economy, we just need a government.

Good thing we have a Republican Congress, so this idiocy is a non-starter. Yes, to completely eliminate the damage the idiot Barack is inflicting on our country, we need to wrestle the White House from any of his followers. But the Congress in it's current composition can at least mitigate the damage from the scoundrel who hates his own country.

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