Obama plans to tax US companies-Apple/Microsoft/Gen'l Elec Would Face Bills Of 10bn+ On Offshore $$$
Barack Obama sets out plan to tax US companies on $2tn profits held abroad
Apple, Microsoft and General Electric would face bills of $10bn or more under president’s budget proposal for one-off levy plus 19% tax on offshore cash
Barack Obama’s plan to force US multinationals to pay tax on the more than $2tn (£1.3tn) of profits they hold offshore could boost US GDP by 1.5%, with major corporate names such as Apple and Microsoft facing bills of $10bn each.
In his budget presented on Monday, the president set out proposals to make companies pay a 14% one-off levy on their cash held offshore followed by a 19% tax on future profits earnings.
Andrew Hunter, economist at consultancy Capital Economics, said the one-off tax could raise at least $238bn and would increase US GDP by about 1.5% if it was used to fund new infrastructure. He said the stock of earnings held abroad by US firms has increased sixfold since 2002 to $2.1tn, led by companies in the technology and pharmaceutical sectors.
“The biggest holders of foreign cash within these sectors, such as Pfizer, Apple and Microsoft, would face payments of around $10bn each,” said Hunter, adding that the permanent tax on future foreign profits could raise up to $600bn over the next 10 years.
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MORE:
http://www.theguardian.com/us-news/2015/feb/02/barack-obama-tax-profits-president-budget-offshore
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