Contribute
CONNECT:

research

Good Manners For Bad Policy

- March 1, 2012

Obama’s Jobs Council Knows When You’ve Got Nothing Good To Say It’s Better To Say Nothing At All

MEMBERS OF OBAMA’S JOBS COUNCIL HAVE NOTHING TO SAY ABOUT OBAMA’S CORPORATE TAX FRAMEWORK

Most Of The Members Of Obama’s Jobs Council Have Refused To Comment On The President’s Corporate Tax Proposal. “President Barack Obama’s jobs council isn’t ready to come out in support of his new corporate tax reform proposal. Instead, most of the 27 business leaders Obama signed up last year for the President’s Council on Jobs and Competitiveness have avoided taking a position in the week since the president announced the plan.” (Josh Boak, “Jobs Council Mostly Mum On Corporate Tax Plan,” Politico, 2/28/12)

  • 15 Out Of 18 Respondents From Obama’s Jobs Council Refused To Comment, Including His Campaign Co-Chair Penny Pritzker And Top Donor John Doerr. “POLITICO reached out to all 27 members of the jobs council. Of the 18 who responded, 15 companies — including Facebook, investment firm TIAA-CREF and cable provider Comcast — declined to comment on the plan. Among those who declined to comment were Obama campaign co-chair Penny Pritzker and venture capitalist John Doerr, a fellow top Obama donor. Robert Wolf, president of the UBS investment bank, said he hadn’t read the plan yet.” (Josh Boak, “Jobs Council Mostly Mum On Corporate Tax Plan,” Politico, 2/28/12)

“Business Roundtable President John Engler Criticized The Plan As ‘A Series Of Significant Tax Increases On Companies With Worldwide Operations.’” (Josh Boak, “Jobs Council Mostly Mum On Corporate Tax Plan,” Politico, 2/28/12)

  • Engler Said The Obama Plan “Adds Complexity And Raises Taxes, Moving Us Away From The Rest Of The World.” “The U.S. tax system has become increasingly outdated, complicated and uncompetitive as the world economies have grown more interconnected,” Engler said. “The [Obama] framework adds complexity and raises taxes, moving us away from the rest of the world.” (Josh Boak, “Jobs Council Mostly Mum On Corporate Tax Plan,” Politico, 2/28/12)

Obama’s Initiatives Are Typically Joined By “Smiling” Executives Who Offer Glowing Statements Of Support For His Economic Proposals. “The White House released its outline for cutting the top tax rate from 35 percent to 28 percent, knowing the jobs council would, at best, have a mixed reaction. It’s a sharp contrast to other recent economic initiatives in which smiling executives joined Obama onstage or offered glowing statements.” (Josh Boak, “Jobs Council Mostly Mum On Corporate Tax Plan,” Politico, 2/28/12)

OBAMA’S CORPORATE TAX FRAMEWORK RUNS COUNTER TO THE TERRITORIAL TAX SYSTEM BOTH HIS JOBS COUNCIL AND FISCAL COMMISSION RECOMMENDED

Obama’s Own Jobs Council Proposed Moving To A Territorial Tax System “In Order To Make America More Competitive In Global Markets” Rather Than Taxing Foreign Profits. “Many Council members agree that the U.S. should shift to a territorial system of taxation in order to make America more competitive in global markets. While most other developed nations have adopted territorial systems that exempt most or all foreign income from taxes when they are repatriated, the U.S. subjects all worldwide earnings to the corporate income tax when they are brought home to the U.S. This approach actually encourages U.S. companies to keep their earnings abroad rather than investing them here at home.” (“Reform The Outdated Tax System To Enhance American Competitiveness,” The Jobs Council, Accessed 2/22/12)

  • Jobs Council: “Adopting A Territorial Tax System Would Bring Us In Line With Our Trading Partners.” “Adopting a territorial tax system would bring us in line with our trading partners and would eliminate the so-called ‘lock-out’ effect in the current worldwide system of taxation that discourages repatriation and investment of the foreign earnings of American companies in the U.S.” (“Reform The Outdated Tax System To Enhance American Competitiveness,” The Jobs Council, Accessed 2/22/12)

Obama’s Fiscal Commission Recommended A Territorial Corporate Tax System Where Foreign Profits Are Not Taxed. “Move to a competitive territorial tax system. To bring the U.S. system more in line with our international trading partners’, we recommend changing the way we tax foreign-source income by moving to a territorial system. Under such a system, income earned by foreign subsidiaries and branch operations (e.g., a foreign-owned company with a subsidiary operating in the United States) is exempt from their country’s domestic corporate income tax. Therefore, under a territorial system, most or all of the foreign profits are not subject to domestic tax. The taxation of passive foreign-source income would not change.” (“Moment Of Truth: The Report Of The National Commission On Fiscal Responsibility And Reform,” The National Commission On Fiscal Responsibility And Reform, 12/1/10)

  • Rather Than Punishing Multinationals, Obama’s Fiscal Commission Said That Corporate Tax Reform Should “Help U.S.-Based Multinationals Compete Abroad In Active Foreign Operations.” “Make America the best place to start a business and create jobs. The current tax code saps the competitiveness of U.S. companies. Tax reform should make the United States the best place for starting and building businesses. Additionally, the tax code should help U.S.-based multinationals compete abroad in active foreign operations and in acquiring foreign businesses.” (“Moment Of Truth: The Report Of The National Commission On Fiscal Responsibility And Reform,” The National Commission On Fiscal Responsibility And Reform, 12/1/10)

BUT OBAMA WANTS TO IMPOSE A GLOBAL MINIMUM TAX WHICH WOULD PLACE AMERICAN COMPANIES AT A DISADVANTAGE

The Wall Street Journal: Obama’s Corporate Tax Plan “Would Make The U.S. Tax System Less Globally Competitive And Raise Effective Tax Rates Above What They Are Today.” “Yesterday's release of the White House ‘Business Tax Reform’ marks a watershed in the corporate tax debate. Now nearly everyone acknowledges that U.S. corporate tax rates hurt American companies. The headline that President Obama wants voters to see is his new top statutory rate of 28%. If only the story ended there. Alas, his reform is stuffed with so many offsetting business tax increases that the overall impact of this and other proposals would make the U.S. tax system less globally competitive and raise effective tax rates above what they are today.” (Editorial, “Obama’s Tax Reform Muddle,” The Wall Street Journal, 2/23/12)

  • WSJ: “The Problem Is That The Tax Increases In This And Other Obama Proposals Would Add New Layers Of Inequity And Inefficiency To The Tax Code.” “The problem is that the tax increases in this and other Obama proposals would add new layers of inequity and inefficiency to the tax code. One principle of tax reform is to create neutrality within and across industries—a level playing field. As the White House proposal puts it, the current code ‘distorts choices such as where to produce, what to invest in, how to finance a business, and what business form to use.’” (Editorial, “Obama’s Tax Reform Muddle,” The Wall Street Journal, 2/23/12)

Dean Garfield Of Information Technology Industry Council: Obama’s Plan “Would Punish Successful Companies And Push Investments Out Of The United States.” ““Dean Garfield, president of the Information Technology Industry Council, a trade group that includes Apple Inc., Microsoft Corp. and Cisco Systems Inc., said the plan ‘would punish successful companies and push investments out of the United States.’” (Damian Paletta and John McKinnon, “Obama Proposal Gets Pushback,” The Wall Street Journal, 2/23/12)

Foreign Companies Doing Business In The U.S. Would Get A Tax Cut While U.S. Businesses Abroad Would Get A Tax Hike. “Thus the plan would increase taxes on U.S. multinational companies as a means of paying for the lower corporate tax rate which will largely benefit domestic companies. On that note, it seems very unfair that foreign companies doing business in this country would get a 20 percent tax cut but U.S. companies doing business abroad would get a tax increase. How does that help U.S. competitiveness?” (Scott A. Hodge, “Thoughts On President Obama’s Corporate Tax Plan,” Tax Foundation, 2/23/12)

  • “The Administration's Proposed Global ‘Minimum Tax’ Is A Bit Like Neiman Marcus Declaring Itself The Last Stop Against The Growth Of Discount Retailers Such As Target, Walmart And, Now J.C. Penny.” (Scott A. Hodge, “Thoughts On President Obama’s Corporate Tax Plan,” Tax Foundation, 2/23/12)

Previous post

Power Grid Failure

Next post

They Said It! Six Years Later, Obama Is Still Doing The “Easiest Thing In The World”
Republican National Committee

Connect With Us

Republican National Committee
Chairwoman Ronna McDaniel
News & Videos
  • 310 First Street SE, Washington, DC 20003
  • 202-863-8500

By providing your phone number, you are consenting to receive calls and SMS/MMS msgs, including autodialed and automated calls and texts, to that number from the Republican National Committee. Msg&data rates may apply. Terms & conditions/privacy policy apply 80810-info.com.

Paid for by the Republican National Committee. Not Authorized By Any Candidate Or Candidate's Committee. www.gop.com

By providing your phone number, you are consenting to receive calls and SMS/MMS msgs, including autodialed and automated calls and texts, to that number from the Republican National Committee. Msg&data rates may apply. Terms & conditions/privacy policy apply 80810-info.com.

Paid for by the Republican National Committee.
Not Authorized By Any Candidate Or Candidate's Committee. www.gop.com