Obama's Corporate Tax Proposal Could Force Companies To Leave the U.S.

A little talked about part of Obama's corporate tax restructuring proposal is his plan to go after the corporate profits that U.S. companies are sheltering in overseas locations. This despite the fact that those companies have already been taxed once by the country that those profits were made in. So, in essence, Obama is proposing a double tax on all of our multinational companies. In doing so, he would cripple our overseas business activity because he will be essentially hitting U.S. overseas operations with the highest corporate tax in the world.

I'm sure the small-minded people in the Obama Administration think that this will bring those overseas manufacturing operations back to the U.S. But, in fact, they just might find out that this tactic will force major U.S. corporations to leave this country and go to places, like Canada, where conditions are more favorable to business. We're already seeing this happen and the President's move on double-taxation will only accelerate the process of businesses leaving the U.S. Note this video from Fox News of just a day ago:

(Click for Video: "Concerns Over Businesses Moving to Canada").

Right now, U.S. multinational corporations are forced to leave their overseas profits, well, overseas. If they should bring those profits back here, they would be hit with a 35% federal tax. If Obama wants to better our American economy, he should propose that corporations are allowed to bring those profits back with zero penalties. This way the money would come back home, enter our economy and -- I'll bet -- create growth. Growth that would increase the tax base and, subsequently, increase federal and state tax revenues. It would be "stimulus" without any taxpayer money. And, even if those companies redistribute those profits as dividend, the IRS will collect taxes on the dividend and the money will go into the hands of U.S. citizens who will, in turn, spend it. Better yet, those funds could even help companies lower their prices on products they sell. Instead, his proposal will only punish business and potentially force them to move out of the U.S.

In Obama-land, there is this belief that U.S. Corporations are intentionally moving operations offshore to avoid taxes. But, in many cases, setting up production facilities in other countries is the only way a U.S. company can be competitive in that country. All too often, U.S. corporations are forced to set up manufacturing in a country as a condition of being able to sell in that country.

Obama is the most business unfriendly President in modern history. And, once again, he's proven this by trying to go after the foreign profits of our most profitable, tax-paying corporations.