Many voices, including Obama’s, are calling for a fairer tax system but others want to keep the loopholes for the bigger corporations.
[poll id="3"]
Reuters carried an interesting piece about President Barack Obama’s move to curb overseas tax havens and job out-sourcing with his first major proposal: eliminate business deductions to offshore subsidiaries that pay no U.S. income tax—this, in a sense, prevents double dipping where a subsidiary corporation charges a US parent corporation for interest on a loan (or uses another device) to create a U.S. tax deduction but pays no tax at the other end on the earnings. The net effect of this is to give large corporations multiple tax deductions that smaller U.S. corporation does not enjoy; thereby, creating a bigger tax rate on the little guy that does do business abroad.