Millennium Post

US IT cos slam Obama’s move to tax their overseas earnings

"The proposal to tax companies' overseas earnings, rather than making our tax code simpler and more competitive through reform, is an area that gives us significant pause," the Information Technology Industry Council (ITI), president and CEO Dean Garfield said in a statement on Tuesday.

"Today's dysfunctional tax code traps nearly $2 trillion in sales revenue overseas instead of putting that money to work here growing businesses and hiring people," he said. "We urge the Administration and Congress to give our broken tax code a complete reboot so that our innovative technology companies can continue to drive America’s economic growth by leading the global marketplace," Garfield said.

Noting that Obama is right to focus on economic growth and job creation for the middle class, ITI said, that his approach is wrong. He said, "Certainly, focusing on STEM education programs, smart infrastructure projects to build a modern transportation system, and fixing our broken immigration system would drive undeniable economic benefits for the country."

"The Budget closes loopholes that perpetuate inequality by allowing the top one per cent of Americans to avoid paying any taxes on their accumulated wealth and uses that money to help more young people go to college," he added.

Later in a news conference Jason Furman, top economic advisor, said the proposal that Obama is making would be  mandatory on all overseas earnings.
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