The Obama administration is preparing to launch yet another executive action, and this time it is aimed at shuttering tax loopholes on companies incorporating abroad to escape high corporate tax rates in the United States.
Though Obama’s tax inversion proposal have failed to gain support in Congress, the White House has said many times that executive actions may be launched to take a more limited approach to address loopholes.
“Americans deserve to know big corporations aren’t playing by a different set of rules,” Obama told reporters on Tuesday, according to The Blaze.
Obama’s Treasury Department stated that the new rules “limit inversions by disregarding foreign parent stock attributable to recent inversions or acquisitions of U.S. companies.”
“I’ve been working for years to eliminate some of the injustices in tax systems, especially companies fleeing the country just to get out of paying taxes,” Obama continued.
Obama went on to say that companies that use this loophole are given the benefits of U.S. customer base and workforce without paying for it.
“They renounce their citizen and declare somewhere else but get all the rewards of being an American company without paying taxes,” he added.
Obama’s Treasury Department is standing by him on this plan.
“These actions took away some of the economic benefits of inverting and helped slow the pace of these transactions, but we know companies will continue to seek new and creative ways to relocate their tax residence to avoid paying taxes here at home,” Treasury Secretary Jacob J. Lew said in a statement. “Today, we are announcing additional actions to further rein in inversions and reduce the ability of companies to avoid taxes through earnings stripping. This will have an important effect, but we cannot stop these transactions without new legislation. I urge Congress to move forward with anti-inversion legislation this year.”
Frankly, we are sick of Obama using executive actions to force Americans to bow down to his will. He is NOT the king he thinks that he is! SHARE this story if you want Obama OUT of the White House!