End tax breaks that reward some U.S. companies with overseas subsidiaries and encourage those businesses to create jobs in other countries, President Barack Obama is telling Congress.I have a couple things to say about this particular story. The first being Max Baucus' opinion that removing tax incentives on these corporations that have overseas operations will decrease American competitiveness - he could not be more wrong. If you think about the basics, you are giving an American company tax breaks for their jobs overseas. I would think this bill, coupled with business legislation benefiting corporations that create jobs in America would provide more of a punch - the companies would contribute to the overall employment of the nation while the tax benefits help them remain competitive. It would also act as a disincentive for companies seeking to employ workers abroad.
Yet it's an idea that has raised concerns even among some lawmakers in the president's own party.
At issue is a bill, now stalled in the Senate, that would do away with some tax credits and deferrals for U.S. companies for operations abroad.
"There is no reason why our tax code should actively reward them for creating jobs overseas," Obama said in his weekly radio and Internet address Saturday. "Instead, we should be using our tax dollars to reward companies that create jobs and businesses within our borders."
Though Obama singled out Republican opposition, the bill also failed to get support from some Democrats, including the chairman of the Senate Finance Committee, Sen. Max Baucus, D-Mont. He has expressed concern that the change would put the U.S. at a competitive disadvantage.
I also found it interesting that Republicans blocked this bill - while they seem to be for less government and the free market, this bill is nothing more then a manipulation of the free market using federal tax codes. If anything, Republicans should be for this bill, as well as any subsequent bills that reward companies that create more jobs because as we all know - Republicans are the champions of the small business owner, or so they
I can see the Republican argument now - ignoring the fact that all the Republicans are against the bill, they would claim that it is not their fault the bill is stalled in the Senate for the mere fact that some Democrats do not support the bill.
I suspect that once elections are over these limited-government-small-business-free-market-loving Republicans may change their mind once they don't need to pander to the tea party fringe...