President Obama blamed Republicans Saturday for blocking bills that would take away tax breaks for U.S. corporations that move jobs to subsidiaries in other countries. Republicans in Congress, he said, "have consistently fought to keep these corporate loopholes open."
In the last four years, the president charged, "Republicans in the House voted 11 times to continue rewarding corporations that create jobs and profits overseas -- a policy that costs taxpayers billions of dollars every year" in revenue lost to the U.S. Treasury.
Obama wants action on a stalled Senate Bill that would end tax credits and tax deferrals for companies with overseas operations. Instead, he wants to give tax breaks for American firms to write off the cost of new equipment in 2011, and also make a tax credit for research and experimentation permanent. "These are common sense ideas," he said in his weekly Internet address.
But there is resistance to Obama's push against favorable treatment for overseas operations, and it isn't coming solely from Republicans and business interests. Some Democrats also fear that ending the tax help could put the United States at a competitive disadvantage. The president acknowledged that "a lot of companies that do business internationally make an important contribution to our economy." But he said "there's no reason why our tax code should actively reward them for creating jobs overseas."
Republicans, in their weekly remarks, said the House of Representatives should return from recess immediately to act on the Bush-era tax cuts due to expire in January. "The prosperity of the American people is more important than the political fortunes of any politician or any political party," said Rep. Mike Pence (R-Ind.) Democratic leaders say they will deal with the tax issue after the Nov. 2 election.
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