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  • Morning Bell: Obama's Job Killing Tax Plan

    First the good news: earlier this week President Barack Obama admitted that high taxes kill jobs. Now the bad news: he wants to raise taxes on U.S. companies anyway. Pitching his new tax reform plan Monday President Obama said that our tax code “says you should pay lower taxes if you create a job in Bangalore, India, than if you create one in Buffalo, New York.” As the Wall Street Journal quipped: “That sounds like a great argument for lowering taxes on the guy creating jobs in Buffalo. Alas, that’s not what he has in mind.”

    Instead, President Obama wants to raise taxes on U.S. companies by: 1) limiting the ability of American business to defer U.S. tax on their foreign income and 2) reducing the credit American businesses receive for foreign taxes paid. The President’s proposals demonstrate a fundamental misunderstanding of tax policy principles and the market forces that drive the global economy. Currently, most other countries do not tax their companies’ overseas profits. So, as the WSJ illustrates:

    A German firm doing business in Ireland, say, pays no German income tax on its Irish profits, but it does pay Ireland’s corporate income tax at its 12.5% rate. The U.S. company competing with that German business in Ireland, by contrast, pays Ireland the same 12.5% on its profits — and it then pays Uncle Sam up to 35%, minus a credit for what it paid the Irish. And because almost everyone else’s corporate tax rates are lower than America’s, U.S. companies end up paying higher taxes than their international competitors.

    And those higher taxes mean a big competitive disadvantage for American firms. Even business leaders that were highly supportive of Obama’s presidential campaign are livid over this latest revenue grab. The San Francisco Chronicle reports:

    Silicon Valley executives made clear to all that Obama’s hunt for revenue to finance his ambitious agenda, from green energy to health care, should leave them alone. … The plan would “make very good companies very uncompetitive,” said Kevin Surace, chief executive of Serious Materials of Sunnyvale. As it is, he said, with the cost advantages that Chinese companies have already, “we’re almost uncompetitive now.”

    Punishing U.S. companies for competing overseas will ultimately kill jobs here at home. For every worker employed by a U.S. subsidiary in a foreign country, 2.3 Americans are employed in the U.S. And a 10 percent increase in foreign investment by businesses has been associated with a 2.6 percent increase in investment in the businesses’ home countries. So, we were delighted to see the President begin to learn that high taxes kill jobs; unfortunately he still needs a couple more classes.

    Quick Hits:

    Posted in Ongoing Priorities [slideshow_deploy]

    46 Responses to Morning Bell: Obama's Job Killing Tax Plan

    1. J.C. Hughes, Texas says:

      Do you suppose Treasury Secretary Timothy Geithner is Obama's sole adviser?

    2. Eugene Hoffman, Hous says:

      John Kennedy and Ronald Reagan knew what to do; lowering taxes grows the economy and increases tax revenue. Increasing taxes limits corporate and private individuals ability to compete and prosper because the tax is passed on to the consumer; Corporations are not charitable organizations; they are required to profit, or they die. Economies are dynamic and not static; over-taxation takes away our competitive advantage.

      The irony is thick; we broke away from a tyrannical monarchy only to become one ourselves: we must vote the collectivists out of our Senate, Congress, and oval office.

    3. Ben C, Ann Arbor, MI says:

      If Barry had owned and operated a small business he would understand why companies sequestra money to prevent it from being taxed. If he had owned a small business he would have learned that any money set aside to cover expenses during slow periods is taxed as income. This removes any incentive to plan ahead for slow times – the money gets taxed and you have less to pay employees and creditors. If, however, you can protect the money then it is available to cover expenses when cash flow drops. But then, what does a "community organizer" know about business?

    4. Ken Jarvis - Las Veg says:

      ANY company that OUTSOURCES

      IS UNAMERICAN

      OBAMA wants to END IT

      AND WE SHOULD ALL SUPPORT HIM.

    5. Linda, PA says:

      To me it looks like Obama doesn't want our economy to be successful!! He wants to destory captalism to make room for socialism/communision!! He wants to control the people in everyway and destory our freedom of speech all of our freedoms!! He has a plan for Change but it is not the kind of Change I want!! We need to unite in pray stop his change!

    6. Frank, Gainesville G says:

      The Fair Tax Amendment would certainly help.

    7. Van says:

      Greed has taken over America. CEO's, Bankers and Wall Street con artists are fleecing the taxpayers and laughing all the way to the bank. This has to change.

      http://aflcio.org/corporatewatch/paywatch/pay/ind

    8. John says:

      So? The Heritage Foundation does a great job of informing and I support them 100%.

      However, the Marxists continue to steam forward crushing our Constitution.

      So, you can comment and inform all day long. How does this change anything?

    9. jim smith new york says:

      Nobama is on his way to creating a "tax centric" economy and culture. This focus will affect all aspects of your life, including breathing, as it causes CO2 emissions the eviro nut jobs just don't like. His ignorance of basic economics and the use of capitalist tools are stunning. His advisers are not well meaning, but just plain old socialist idealogues, wrapped in brown shirt packages. I can hardly wait for all the trains to run on time, or else.

    10. Dennis A. Social Cir says:

      Lets see if the dems have the gall to do what is right on this topic. I doubt it. Companies keep going out of the country because of corporated taxes. Carter tried the same thing that obama is doing, this country saw inflation at its highest and interest rates at 16%. The houseing market foled like a deck of cards, and business went down with it. obama is intent on his socialist style "guvernment" and on socialist health care. There is no regard for this country or for the American people.

    11. J.C. Hughes, Texas says:

      Ken of Vegas's suggestion is a proven recipe for a depression. It's akin to killing your customer base, closing shop, extorting what's left of the shop keepers receipts, while at the same time telling them to create more jobs. Ken, I think you need a lesson in elementary economics. The majority Demagogue's brainwashing (leftist water boarding)doesn't count.

    12. michael hutchings says:

      THE PRESIDENT DOES NOT CARE ABOUT CREATING JOBS HE CARES ABOUT A MONOPOLY AND CONTROLLING THEIR CREATION. MONOPLIES DO NOT SATURATE MARKETS BUT MAINTAIN SHORTAGES AND POWER.

      USING EUROPE AS A MODEL WE WILL HAVE A PIE THAT DOES NOT GET LARGER AND THE PIECES GET SMALLER ALONG WITH THE SPIRIT OF THE PEOPLE CAUGHT IN SUCH A MECHANISM. SO MUCH SO THAT ANY INCLINATION TO BAKE ANOTHER ONE VANISHES.

      THAT SOCIALIST FORMULA TRANSLATES INTO 10 TO 15 PERCENT UNEMPLOYMENT AND AN EQUAL NUMBER ON DISABILITY AND ANOTHER GROUP EQUIVALENT IN NUMBER ON THE FRINGE OF BOTH MAKING THE WAGON A LITTLE CROWDED AND A LOAD FOR THOSE STILL PULLING IT.

      ONE WAY IT MUST BE SUPPORTED IS BY IMMGRATION OF ADULT WORKERS AS PREFERABLE TO HAVING BABIES THAT HAVE TO BE RAISED AND WOULD NO DOUBT INCREASE THE CARBON FOOT PRINT STARTING WITH THE PATTERING OF THEIR LITTLE ONES THAT MIGHT GROW BIGGER WITH DEMANDS OF THEIR OWN DISTURB THEIR MASTERS WHEN THEY NAP AND THEIR COUNTRIES UNRECOGNIZABLE. TAXES WILL CONTINUE TO CLIMB AND WAGE LEVELS AND SKILLS CONTINUALLY SENT ABROAD TO AVOID CREATION OF AN EXPANDED WORKING CLASS WILL MAKE US INCREASINGLY REDUNDANT IN THE SCHEME OF THINGS.

      DO WE REALLY WANT TO BE THAT? UNTIL ALL THATS LEFT OF US IS A DODDERING AND BUNCH OF PARASITES.

      NO ONE IN THIS COUNTRY SHOULD LIVE IN FEAR OF HAVING THEIR ASSETS STRIPPED FROM THEM AND THE FIRST ASSET WE START WITH IS THE CASH WE MAKE FROM OUR LABOR.

    13. Blu Lawson, Tulsa, O says:

      People in high places need to get this man out of the White House. America cannot survive the way he wants and will spend with Tweedle Dee and Tweedle "Dumb" in Congress.

    14. Sam Coniglio III says:

      Why is our President and Congress so dump about creating good jobs in the USA ?

    15. Chris, Western Wi. says:

      Yes indeed-greed has permeated this country! The leaders of this "greed" are in the white house and senate lead by this pretent president. This phoney, "community organizer" is an anti-american power hungry man-boy. These silly leaders operate with the mentality of high school juveniles at a pep rally (thanks to public education!). I question their patriotism involving every issue facing this country today. Incompetence is never excusable!

    16. Jim@Redding,CA says:

      This would be a road map on "how to destroy the USA in less than 200 days"…

      The sad truth is, there are not enough true Americans who have the spine to get

      off their lazy butts to do what it takes

      to put an end to what Obama & Co. are doing to us!

      There are, however, a couple of states

      (Texas/Utah) who have made a bare beginn-

      ing by instituting some interesting gun

      laws that make federal intervention all

      but impossible. This is only a START.

      Pretty much, what the states must do to

      preserve constitutionally guaranteed free-

      doms of their citizens is to pass whatever

      internal acts to negate the outrageously

      criminal bills whizzing through Congress

      theses days.

      My personal belief is that the citizens

      of this once-great country are too apathe-

      tic and complacent to realize how much in

      real danger they are of losing all that

      God has blessed them with… I don't be-

      lieve enough of us have what it takes to

      stand up and speak out (in the face of

      "PC") in order to save what's needed out

      of what's left of our freedoms. If they

      don't act now, we are all going to wake up

      one morning whining about "how did things

      get so bad so quickly?"

      Too many have the attitude of "I'm just

      one person, what can I do?" The simple

      answer is: if you do nothing, why should

      anyone else?

    17. Truth Hurts, The Rea says:

      Is it possible to tax a free man and nation into slavery?Isn't there something about that in the Constitution ,the Amendments and the Declaration of Independence?You'd think a person who claims to be a Constitutional scholar and has sworn before God Almighty and the People of the USA to uphold said Constitution would know that? Can you say impeachment!

    18. Lynne, Houston, Texa says:

      From World news today….just fyi for everyone.

      Obama's grandmother to perform Muslim Hajj

      wnd ^ | May 03, 2009 | Aaron Klein

      JERUSALEM – President Barack Obama's paternal grandmother, Sarah Obama, will reportedly perform the Muslim Hajj pilgrimage this year along with her son Syeed Obama.

      A private Kenyan television channel, quoted extensively by the Kenyan and Pakistani media, reported Sarah Obama and her son will also visit Dubai before going to Saudi Arabia for performing Hajj. The pair lives in Kenya.

      The News, a newspaper in Dubai, confirmed the report. It quoted United Arab Emirates' property tycoon Sulaiman Al Fahim as stating he will personally sponsor Sarah Obama's trip after meeting the elderly Obama in Kenya last week and learning she had always wanted to perform the Hajj.

      "I found out that she had not been to the Hajj and that she very much wants to go. As my own mother is no longer with us, our family has a spare place. So I invited her and she has accepted," The News quoted Fahim as saying.

      The Hajj is the largest annual pilgrimage in the world. The fifth pillar of Islam requires every able-bodied Muslim to travel to Mecca at least once in their life in a demonstration of solidarity with fellow Muslims and in an act of individual submission to Allah.

      Obama's grandmother, a Muslim known locally as "Mama Sarah," lives in Kogelo, a tiny village near the Ugandan border. She was in Washington, D.C., in January for Obama's swearing-in ceremony.

    19. David Sayers, NC says:

      Blu from Tulsa wrote that people in high places should get this man out of the White House,sadly, there is no one with the backbone to even suggest it. So, it's up to us, the legal citizens of this country to do it. Vote this fraud and the rest of the selfserving,greedy socialist bozos out of office for good. Folks, you have to get really involved,what ever you are able to do,do it. Call your represenatives,constantly. Let them know why you put them in office. In addition,let them know also that they can put out of that office. Stand up for this country and it's Constitution and let these clowns know that they can't get away with anything. I believe we need an organization to combat the ACLU. This bunch of commies have been eroding the fabric of America for decades. Alfred E. Obama is clueless,we all have known this from the begining,except for maybe Komrade Ken,and all he wants and desires is for everyone to be dependent of the government. Impeachment?maybe. Being voted out of office? ABSOLUTELY. And Komrade Ken,stop watching state run TV.

    20. Steve, Michigan says:

      Van, I hope you take a reality check. Greed is one of the less attractive, yet universal, human characteristics. There's lots of categories of greed: money, power, sex, etc. When attempts have been made to eliminate greed via government policy, the results have been awful…greed was not eliminated and millions died in mass murder cleansing campaigns, to say nothing about the misery of the living. Study up on the Chinese cultural revolution, the Russian revolution, etc. The irony is that greed was not eliminated at all. Some of the most corrupt societies are the ones that profess to be suppressing greed. It's effects can be somewhat ameliorated, but greed cannot be eliminated. As for who is "fleecing" the taxpayers, please keep in mind that almost half of Americans pay no income taxes, so they are not getting fleeced. The other half are probably getting fleeced, which is what happens when the government gets its hand on our money. If the question is one of "fleecing" rates, I am quite certain that the government is bigger than all of the private sector con men taken together. It's pretty neat … they get to do more damage than anyone else and, at the same time, claim immunity and even climb on their high horse to attack productive citizens for being greedy.

      In the end, the only deep remedy for greed (what we used to call "sin") is the certain recognition that we will have to account for our greed sometime, whether here or hereafter, and forgiveness from God and those who've been victimized. This is an individual thing. In the meantime, I like the way the founders tried to address it: create governments founded on laws with separations of powers, to keep anyone inclined to grab too much from being able easily to do so due to the watchfulness of competing interests and the threat of prosecution. Unfortunately, Utopia is impossible in this world. Play your cards right and you might get to find Utopia in Heaven.

    21. Truth Hurts, The Rea says:

      When will the rest off the world figure out if we fail as a nation of freedom and the worlds free market machine they will fall in to total chaos with out us to hate and emulate and protect them from there own people?Is it time to learn Chinese or Russian?Whose nationality will the Blue helmets resent?Or will our own troops forget there pledge to up hold OUR Constitution and support a very mortal man or party,if our officer corp and military have already did the Hitler oath I fear for my nation and our freedoms!

    22. Bob in St. Louis, Mi says:

      It's obvious to me that th Obama administration is hell bent on destroying our economic base and I'm just wondering why the american people aren't screaming bloody murder and marching on D.C.!! This whole 100+ days mess has just been outrageous and it's the working people, like myself, who are going to get it stuck up their you know whats!! Can anybody stand up to these morons? I'm just waiting for some bright, honest, straight forward thinking member of congress to stand up and say, "This is enough Mr. President!" You are not going to destroy this great nation with your two-bit, community (ACORN) organizing, backroom phony balogney, chicago style bully politicking!! We've have enough of your socialist/marxist economics!! We are going to take back control of our government, the wasteful spending, and take control of our destiny out of your hands!! You are not fulfilling your constitutional duties to protect and defend our great country! You have betrayed the american people, and you should resign from the presidency without haste! Take your crooked politics and your inept economic skills back to Chicago where you belong!! IN GOD WE TRUST AND GOD BLESS AMERICA!!

    23. BT Sterling Va says:

      This is what America gets for electing a President that needs to Train on the Job! Harvard should go put their heads in the sand and disown this (graduate????) and a AH HA for the Truth Hurts who suggested, besides myself…indeed it is time to call for impeachment before he bankrupts the country if we aren't already.

    24. Proud citizen says:

      That’s why our businesses are going to other countries.
      Big government is stepping in the wrong places. People think they have to make $20.00 per hour (not so with “fair tax”) Create jobs? Build a fence on the southern border! If we can put a man on the moon, why can’t we build the fence?
      Card check won’t help our businesses either.

    25. MAS1916 - Denver, CO says:

      By driving jobs and company headquarters overseas, Obama and the Democrats are creating a dependency on government. Since the free commercial environment will not sustain growth, workers will increasingly depend on government for their livelihoods.

      2010 should bring about significant inflation, since no rational investor – even the Chinese – will purchase much in the way of US T-bills at current rates. Obama will be forced to print the money he needs to support Stimulus spending. The inflation tax will then hit the middle class hard – just in time for election day.

      Unemployment will also lag. Companies that are able to, are considering relocating off-shore to avoid Obama’s tax rates. Since the US consumer market will be under stress, there won’t be as much incentive to stay.

      Government spending is of course at the root of the problem. It is interesting to note though, that in the incredible Stimulus and Budget bills, Democrats couldn’t find enough money to close the Guantanamo detention center. Seems that Congress people don’t want trained killers in their states – in prison or otherwise. And should US courts release any of these murderers, what then? Do they compete in the job market too?

      For a satirical look at what jobs Gitmo detainees might be qualified for, you can hit:
      http://firstconservative.com/blog/obamatudes/closing-guantanamo-top-ten-occupations-for-released-terrorists

    26. Pete Kleff, Cypress, TX says:

      It is ironic that you ran this piece today. Yesterday evening I had supper with family. One of my daughters, who works for a large international consulting firm, stated her company was considering “inversion”. That is incorporating in another country where taxes are lower and banking laws are more favorable, and terminating the U.S. corporation. The effect would be to only pay U.S. taxes on income earned in the U.S. Evidently this is being actively considered by innumerable U.S. corporations. If true, the domestic impact could be catastrophic.

    27. Steve, Michigan says:

      I’m left with the sinking feeling that the Obama administration is going to repeat the biggest mistakes of the Hoover/Roosevelt administrations, which turned the a short term depression into a ten year depression. In case anyone wants to get educated on this, read Amity Schlaes’ book The Forgotten Man. She is no ideologue and the evidence is very convincing.

    28. Wallyblu, Zion, IL says:

      A simple question. What is foriegn aide but out-sourcing American capital to create jobs in foreign countries.

    29. Michael - New York N says:

      http://www.youtube.com/watch?v=cMnSp4qEXNM&NR

      Everyone should see this video..Obama, Frank, Shumer all owe this country a response to this video.

    30. Mike Sheahen, Hickor says:

      Quote: "So, we were delighted to see the President begin to learn that high taxes kill jobs; unfortunately he still needs a couple more classes".

      Trying to clue you in gently here, but there is no basis for any such being "delighted" exactly because "the President" has neither "(begun) to learn that high taxes kill jobs", nor does he "still (need) a couple more classes" in that fact.

      Why? Because Obama is showing how he is a Leftist Marxist Communist/Socialist government elitist and statist who already knows that high taxes kill jobs, and uses that to simultaneously pursue that agenda and demagogue and pander to blame anything and anybody else, including private free enterprise employers (businesses) for such as the job killing consequences.

      After all, as the Left has already succeeded far too much in showing, nothing is as conveniently effective for them than such Leftist government elitist and statist antics and machinations which, in effect, promote, perpetrate, and perpetuate government dependence and dependants, which thus of course generates votes, power, and money for them, which also just happens to be essential for their Leftist government elitist and statist agenda.

      So don't kid yourself…Obama already knows that high taxes kill jobs, so he has no need for any more "classes" in that fact, and, true to his Leftist government elitist and statist methods and agenda, he will simultaneously use that fact while blaming anybody and anything else for the consequences, including blaming private free enterprise employers (businesses) for the job killing consequences.

    31. Barb -mn says:

      What would really be encouraging is the president eliminating 500,000 GOVERNMENT jobs and introduce the free market for commencement.

    32. Pingback: Morning Bell: Obama’s Job Killing Tax Plan « Thoughts Of A Conservative Christian

    33. Pingback: Obama: Tax companies, kill jobs, cuts are not cuts « GOODNESS WORLD LIFE BLOG

    34. Darvin Dowdy Houst says:

      And how many jobs have Republicans killed for U.S. citizens? By allowing 12-20 million illegal's in to work? By not demanding that employers use the E-Verify system? By not beefing up the I-9/Social Security Mismatch Letter program – putting some teeth in it?

      Come on Heritage Foundation! Such hypocrisy. Republicans and democrats place little value on American jobs. You people are still in the hip-pocket of the vile U.S. Chamber of Commerce. Darvin Dowdy

    35. Frank W., New Mexico says:

      With Obama's tax plan breaking all the business's, the Sierra Club turning 650,000 acres of lush productive California farm land into desert, Southern California confuscating 17% of the Colorado River water alloted to Imperial Irrigattion district for the farms in Imperial Valley California, what the heck is going on? I don't think this country will survive four years of this guy. I believe the whole country has gone crazy. This administration is not worried about re-election they are in there grabbing everything they can and in four years they will all be multi-billionaires and the country will be broke. The privileged few will move out of the country and live the good life and the rest of us will be here working for the Chinese. Everytime I see those big ears and that "what me worry boy" smile on TV I turn the channel. I never thought I would ever feel this way about a president of the United States.

    36. mac tx says:

      IF SOME OF THE MAIN STREAM MEDIA WOULD QUIT PLAYING FAVORITIZEN JUST LOOK AT THEIR LIFE SAVINGS EVEN THE GOV TELLS US WE ARE DOWN 50%.LET'S JUST AIR ALL THE NEWS AND NOT PEICE IT TOGATHER TO SEND OUT WRONG SIGNALS. WITH THE INTERNET AND FOX TELLING IT LIKE IT REALY HAPPENS.

      SOONER OR LATER WE WILL HAFTO ANNY UP. I DON'T LIKE FEEDING A DOG THAT CRAPS IN HIS OWN DOG

      HOUSE.THIS IS A GREAT COUNTRY THE U.S.A.WE DON'T

      NEED TO CHANGE OUR COUNTRY GUST

      GET RID OF THE SLUSH FUND GREED ON THE HILL.MABE MOST OF US ARE PRETTY TIRED WHEN

      WE GET OF WORK. WE SHOULDEN'T HAFTO KEEP WATCH OVER GOV. THEY ARE SERVENT'S TO DO WAT IS JUST.

      I'M NOT TO SMART OR THAT GOOD ON A LAP TOP BUT I DO KNOW WHAT IS RIGHT AND WHAT IS WRONG. WE DIDDEN'T PUT YOU PEOPLE IN OFFICE TO RUN OUR COMPANYS ORE RULE OVER US.IF YOU PEOPLE IN OFFICE

      WOULD JUST DO YOUR JOB. QUIT TRYING TO MANULIPATE

      THINGS,AND COVER UP OTHERS MISTAKES.LOWER PAYROLL TAXES EASE UP ON THE COMPANIES THAT CREATE OUR JOBS.START ACTING LIKE CAREING PEOPLE INSTAD OF SOME ELETE SPECAL GROOP. WE ARE ALL HERE TILL GOD GATHERS US UP. LET'S LISTEN TO ARE HEART'S NOT GREED WE ARE ALL JUST A LITTLE FED UP BUSTING OUR BUTS ALL THIS DEBT AND NOTHING TO SHOW FORE IT.

    37. mac tx says:

      SEMBER FEDELIS

    38. mac tx says:

      THIS IS AMERICA LAND OF THE FREE HOME OF THE BRAVE

      CUT TAXES AND WATCH HER BLOOM

    39. mac tx says:

      LET’S KNOCK THREE BIRDS OUT WITH ONE STONE.

      LET’S DO FINGER PRINT’S
      TAKES CARE OF THE CENSUS
      TAKES CARE OF VOTEING

      TAKES CARE OF ONE WALFARE CHECK PER PERSON
      TAKES CARE OF ELLIGALES
      TAKES CARE OF DELINQUENT CHILD SUPPORT
      TAKES CARE OF LAW BREAKERS WITH WARRENT’S

      I’M SURE IT CAN’T BE INFRINGEING ON ANYONES
      RIGHTS SINCE ALL OF US LEGAL TAX PAYING CITIZENS ARE ALREADY ON RECORD. MABE EVEN THROUGH IN A RANDOM DRUG TEST. THAT IS WHAT I AM SUBJECT TO.

    40. Ardith, Georgia says:

      This is in response to Nancy Pelosi's contradiction regarding waterboarding. Did she or did she not know about the techniques before they were used?

    41. Hector Orlando says:

      I think it is about that time that some one has to stop this crazyness of the Obama Marxist Government. What happened to;

      By the people, for the people etc. this is being rolled over and noone is stopping it.

    42. Pingback: The Weekly Claw 5-12-09 - AllMilitary.com's Military Blog

    43. Daniel Mathison says:

      Obama doesnt care about creating jobs because he has the job he wants. Come reelection time he might talk about creating jobs again.

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    45. Pingback: Morning Bell: President Obama’s “Pro-Business” Policies Are Killing the Free Market | The Foundry: Conservative Policy News.

    46. Pingback: Morning Bell: President Obama’s “Pro-Business” Policies Are Killing the Free Market | Conservative Principles Now

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