The President Said What?? Obama Proposes Massive Changes to U.S. Taxation of International Operations
Could we really be facing a complete overhaul of the U.S. system of international taxation? For the first time since the Kennedy administration, the President has come out swinging at the fundamentals of the U.S. taxation of multinational corporations and is seeking to garner support for sweeping changes. President Barack Obama made some inflammatory statements, which no doubt will be followed by many more inflammatory retorts from his opponents in the coming weeks and months. Many large corporations have already voiced their displeasure or aligned themselves with lobbying efforts aimed at scuttling the proposals.
First, what was said? In a nutshell, these proposals combine legislation that has been introduced over the past few years, some of which we have discussed before. (See A&M Tax Advisor Weekly, Issue 41–2008.) However, for the first time we have first-hand insight into which ones the President intends to get behind and push. The following are three tenets of the President’s proposal: