In his full-bore populist speech in Cleveland today, President Obama repeated the now all-too familiar line about tax breaks for companies that ship jobs overseas.
And then he added something new.
This week, I proposed some additional steps to grow the economy and help businesses spur hiring. One of the keys to job creation is to encourage companies to invest more in the United States. But for years, our tax code has actually given billions of dollars in tax breaks that encourage companies to create jobs and profits in other countries.
I want to change that. I want to change that. [applause]
So now it’s bad to create profits overseas?
A reminder from a recent NAM Key Vote letter:
An estimated 22 million people in the United States – more than 19 percent of the private sector workforce and 53 percent of all manufacturing employees – are employed by companies with operations overseas. …Some of the proposed tax increases, which are mischaracterized as closing tax loopholes, actually represent significant changes to pro-growth tax policy supported by Congress and the Administration.
Which raises a larger point. Save perhaps for the familiar R&D tax credit, these new, large-scale tax policy proposals that the President rolled out this week — with just a month or so left before Congress leaves town again — cannot be adopted in isolation. Their impact extends throughout the tax code, changes that require serious examination for their impact on businesses, taxpayers as well as their potential unintended consequences.
Here’s the most detailed presentation on the President’s proposals we’ve seen at Whitehouse.gov, provided by Communications Director Dan Pfeiffer at the White House blog, “Rebuilding Our Economy to Work for Middle Class Americans Again“: (continue reading…)