Big Business Kills a Damaging Tax Increase on Overseas Profits

By October 15, 2009Economy, Taxation, Trade

We might as well make it Wall Street Journal morning here at Shopfloor in light of the good stuff on the opinion page. Here’s the editorial on the Obama Administration decision to shelve the plan to raise $200 billion in taxes on U.S. businesses with overseas operations by ending deferral. From “In Praise of Lobbyists“:

The idea that raising corporate taxes would promote job creation never made sense, and the mere threat of higher taxes is one factor depressing business investment and slowing any recovery. So it’s good news that the Administration seems to have set this job-killer aside, at least for now. Administration sources are saying they may return to this bad idea as part of their tax increase, er, tax reform proposals in a year or two.

The editorial follows a thorough examination of the issue by the Journal Tuesday, “Business Fends Off Tax Hit.” See also our post, “Wisely, White House Shelves ‘Tax Deferral’ Plan…For Now”

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