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Townhall
How Barack
Obama Killed Tax Reform in Its Infancy
Donald Lambro
Aug 08, 2014
WASHINGTON - There's a much bigger, largely untold story behind the
renewed debate over U.S. corporations who merge with foreign firms to
reduce their federal tax bills.
The latest chapter in the story concerns Walgreen, the nation's largest
drugstore chain, which plans to go ahead with a cash and stock purchase
of a Swiss company that could have resulted in a big tax cut on its
corporate profits.
Walgreen, however, decided against moving overseas, saying it plans to
keep its corporate roots in the U.S. But the back-story involves far
more fundamental issues that the news media either played down or
ignored entirely.
It has to do with our 35 percent top corporate tax rate, the highest in
the industrialized world, and why it's forcing U.S. businesses to move
abroad, sometimes by merging with foreign firms; why it's hurting
capital investment, job creation and economic growth here at home; and
why President Obama's policies are in large part responsible for what
is happening in the corporate world.
While Walgreen abandoned its plan, dozens of other corporations were
considering moving abroad, costing tens of billions in lost federal
revenues unless changes are made to eliminate tax loopholes and other
exemptions.
Another part of the story deals with a failed, bipartisan effort in the
House and Senate to overhaul the IRS code to do just that in order to
lower the tax rates, an idea Obama stopped dead in its tracks. More on
that in a moment...
Read the rest of the article at Townhall
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