Paying higher taxes is “economic patriotism.”
We previously reported on the Newest Obama Admin Mandate: Corporate Tax Patriotism.
That “patriotism” push is moving into high gear, as Jeff Mason of Reuters reports:
Obama rails against corporate maneuver to evade U.S. taxes
U.S. President Barack Obama on Thursday hammered U.S. companies that avoid federal taxes by shifting their tax domiciles overseas in deals known as “inversions” and called on Congress to pass a bill to curb the practice.
During remarks to a rowdy crowd at the Los Angeles Technical College, Obama promoted what he called “economic patriotism” and made clear he believed the companies that were engaging in such practices were not being patriotic. The president was in California on a three-day fund-raising swing for Democrats.
So-called inversion deals occur when a U.S. company acquires or sets up a foreign company, then moves its U.S. tax domicile to the foreign company and its lower-tax home country.
Nine inversion deals have been reached this year by companies ranging from banana distributor Chiquita Brands International Inc to drugmaker AbbVie Inc, and more are under consideration.
The transactions are setting a record pace since the first inversion was carried out 32 years ago.
“Even as corporate profits are higher than ever, there’s a small but growing group of big corporations that are fleeing the country to get out of paying taxes,” Obama said.
“They’re technically renouncing their U.S. citizenship, they’re declaring their base someplace else even though most of their operations are here. You know some people are calling these companies ‘corporate deserters.’”
Obama said he did not begrudge companies making profits but said corporate tax evasion practices made it harder for the middle class – his target political constituency – to succeed.
The issue was discussed on Neil Cavuto’s program on the FOX Business Network last week.DONATE
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