from tax news:
United States President Barack Obama has announced that he will put forward new tax proposals in the coming weeks designed to reward companies that choose to invest or bring back jobs to the United States, and to eliminate tax advantages for companies moving jobs overseas.
While the President did not elaborate on the proposed tax measures, they are expected to form part of the 2013 federal budget blueprint, which is due to be sent to Congress during the first week in February.
The President's past budgets have contained many proposals to deter US firms from 'shipping jobs overseas', for example by ending the corporate deferral rules, which allow US businesses that invest overseas to take immediate deductions on their US tax returns for expenses supporting their overseas investments but then "defer" paying US taxes on the profits they make from those investments. This proposal has, however, never been enacted, but is almost certainly to figure again in the forthcoming budget.
Obama made the announcement during an "Insourcing American Jobs" forum at the White House, attended by senior executives from some of America's largest companies which have recently switched production back to the United States or are planning to invest there, including Ford, DuPont and Intel.
"I don’t want America to be a nation that’s primarily known for financial speculation and racking up debt buying stuff from other nations," Obama said. "I want us to be known for making and selling products all over the world stamped with three proud words: Made in America. And we can make that happen."
"I don’t want the next generation of manufacturing jobs taking root in countries like China or Germany. I want them taking root in places like Michigan and Ohio and Virginia and North Carolina. And that’s a race that America can win," he added.
"[My] message to business leaders today is simple: ask yourselves what you can do to bring jobs back to the country that made our success possible," the President said. "And I'm going to do everything in my power to help you do it. We're going to have to seize this moment."