Email
Password
Remember meForgot password?
    Log in with Twitter

article imageOp-Ed: Burn it down, Mr. Obama

By Mike Rossi     Jul 25, 2014 in Politics
During the first five and a half years of his presidency – and I imagine for the 30 or so months that remain — I’ve had a difficult time supporting many of the decisions made by President Obama.
The enactment of the Affordable Care Act — arguably the hallmark of his presidency — will ultimately be viewed as a comprehensive failure, in spite of its positive merits. Given the advantage of hindsight, I wonder if Mr. Obama would have pressed so hard for its passage?
Before going further I should say this:
This Op-Ed is not an indictment of the Obama Presidency. I respect the president and the office of the president regardless of political affiliation. Those conservatives who choose to vulgarly criticize Obama do not belong at the table of reasonable discussion any more than those liberals who choose to be vulgarly critical of former President Bush.
Yet the president has finally revisited an issue the majority of Americans — whether left, right or center — can get behind: the LONG overdue reformation of corporate tax law.
Though the United States of America has one of the highest corporate tax rates in the world, a beefy 35 percent, it does little good if corporations can find ways to legally shelter their money offshore.
How can companies like General Electric, Apple, Google, Pfizer and Microsoft — distinctly American brands with a bulk if not the majority of their revenue coming from American wallets — get away with leaving roughly $2 trillion overseas, beyond the reach of the IRS?
Yes, I know it’s not illegal (hooray for intelligent accounting), but to paraphrase President Obama during his speech in Los Angeles yesterday, that doesn’t make it right.
To be fair, America has to shoulder some of the responsibility for corporate tax flight. A 35 percent rate is highly uncompetitive. Why would any CEO sign off on sending over a third of profits to the IRS when Ireland or the UK beckon at 12.5 percent and 21 percent, respectively?
Discouraging corporations for reallocating assets in the first place by incentivizing domestication is a major component of “loophole-closing.”
If President Obama is serious, and let us hope that he is, he can pave the road for asset repatriation before his departure in 2016.
He has already proven himself a charismatic and well-spoken leader, capable of generating sustained surges of public support. Now all he needs to do is direct that surge at something that will truly benefit the lower, middle and upper-middle classes: corporate tax reform.
This opinion article was written by an independent writer. The opinions and views expressed herein are those of the author and are not necessarily intended to reflect those of DigitalJournal.com
More about Barack O, President, Corporations, Taxes, Congress
More news from
Latest News
Top News