Obama Pledges to Move Quickly to Curb US Corporate Tax Dodgers

Wednesday, 06 Aug 2014 08:07 PM

 

  Comment  |
   Contact  |
  Print  
|  A   A  
  Copy Shortlink
President Barack Obama said on Wednesday his administration plans to move quickly to curb what he called a "herd mentality" by companies doing business deals that help them escape U.S. corporate taxes, saying the practise was unfair to Americans.

Obama's comments came the day that U.S. retailer Walgreen Co. backed down from its plan to use a so-called inversion to reduce its taxes. Obama did not single out Walgreen, which is based in his home state of Illinois.

In an inversion, a U.S. corporation avoids U.S. taxes by buying or setting up a foreign company and then moving its tax domicile to that foreign company and its home country.

"We don't want to see this trend grow," Obama said at a news conference. "That kind of herd mentality is something we want to avoid, so we want to move quickly, as quickly as possible."

Obama made the comments in a wide-ranging news conference at the conclusion of the U.S-Africa Summit in Washington, where he hosted dozens of African leaders to discuss trade, business opportunities and security issues.

Obama said the U.S. Congress would need to pass legislation to stop the use of tax inversions entirely, but in the meantime, he plans to look for ways to discourage them.

"It's not fair. It's not right," Obama said. "The lost revenue to Treasury means it has got to be made up somewhere, and that typically is going to be a bunch of hard-working Americans who either pay through higher taxes themselves or through reduced services."

Inversion transactions have occurred at a record pace this year, but three deals have recently collapsed.

Walgreen had planned to use a takeover of Europe's biggest pharmacy chain, Alliance Boots, to move its domicile overseas, but backed down from that plan.

Obama said: "We can't solve the entire problem administratively, but what we are doing is, are there elements to existing statutes that are interpreted by rule or by regulation or by tradition or practice that can at least discourage some of the folks who may be trying to take advantage of this loophole."

© 2014 Thomson/Reuters. All rights reserved.

  Comment  |
   Contact  |
  Print  
  Copy Shortlink
Around the Web
Join the Newsmax Community
Please review Community Guidelines before posting a comment.
>> Register to share your comments with the community.
>> Login if you are already a member.
blog comments powered by Disqus
 
Email:
Country
Zip Code:
Privacy: We never share your email.
 
Hot Topics
Follow Newsmax
Like us
on Facebook
Follow us
on Twitter
Add us
on Google Plus
Around the Web
You May Also Like

Stocks Crawl to Record Close Ahead of Thanksgiving Holiday

Wednesday, 26 Nov 2014 17:12 PM

The U.S. stock market inched upward to another record close on Wednesday ahead of the Thanksgiving holiday as investors  . . .

Harvard's Feldstein: Low Oil Prices Help US as Iran, Russia Suffer

Wednesday, 26 Nov 2014 16:30 PM

Harvard economist Martin Feldstein says "the low price of oil is good news for the United States economy, because it imp . . .

OPEC Heading for No Output Cut Despite Oil Price Plunge

Wednesday, 26 Nov 2014 16:13 PM

OPEC Gulf oil producers will not propose an output cut on Thursday, reducing the likelihood of joint action by OPEC to p . . .

Most Commented
Top Stories

Newsmax, Moneynews, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, NewsmaxWorld, NewsmaxHealth, are trademarks of Newsmax Media, Inc.

 
NEWSMAX.COM
America's News Page
©  Newsmax Media, Inc.
All Rights Reserved