Obama Going After Tax Havens and Loopholes

Members of the business community today are starting to sound off in opposition to President Obama's new plan to crack down on offshore tax evasion, denouncing the initiative as a "foolish" program that would do more harm than good.

Critics argue the president's effort to raise taxes on the overseas profits of U.S. companies could damage U.S. multinational corporations.

"His proposals would put American corporations at a great disadvantage, which is a very foolish policy in a competitive global marketplace," said Dan Mitchell of the Cato Institute.

Announced earlier today, the Obama administration's two-part plan would remove tax deductions for companies that take jobs overseas and reduce the amount of taxes lost to overseas tax havens.

"If financial institutions won't cooperate with us, we will assume that they are sheltering money in tax havens and act accordingly," Obama said in announcing the plan today in Washington, adding that the government will also hire 800 new IRS agents to enforce it. - ABC News Story

Well, Americans can feel a little better temporarily. It appears that Obama is formulating an Army of IRS Agents that are going after every penny that they can get their hands on. When they can't get enough to cover the spending, the taxes will go up on us.

This plan has a tremendous down side. You can get so caught up in the loopholes and tax havens that you make it impossible for American Business to compete in a global marketplace. Go after the Illegal Activity, but don't just assume, as Obama Stated he would do, that everyone is guilty.