Investor extraordinaire Wilbur Ross sees great risk in President Obama’s plan to raise $210 billion by increasing taxes on U.S. companies’ income held overseas.
The chief executive of WL Ross & Co. doesn’t have a problem with the administration cracking down on individuals who hide money abroad to avoid taxes.
“There was a big scandal involving some of the large banks aiding and abetting American citizens to evade their U.S. taxes through a variety of offshore things,” Ross explains to CNBC.
“The part that’s more complicated is about the corporations,” he says.
“It almost sounded as though he was intending to be punitive on corporations that had extensive overseas operations.”
There, Ross is concerned.
“To the degree that’s true, I think it would be a huge mistake, because one of the reasons that many of the U.S. corporations are prospering is in fact their participation in the more rapidly growing markets overseas,” he says.
“I think that’s a very dangerous slope.”
David Roche, global strategist at Independent Strategy, says the program symbolizes the Obama administration’s desperate search for revenue as the government’s budget deficit and debt burden explode.
“It’s going to go after anything that is money in order to try to limit the damage it’s doing through its fiscal policies, and that includes the rich and corporations," he tells CNBC.
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