Arab Today, arab today tax avoidance is a big global problem
Last Updated : GMT 23:03:21
Arab Today, arab today
Arab Today, arab today

President Barack Obama:

Tax avoidance is 'a big global problem'

Arab Today, arab today

Arab Today, arab today Tax avoidance is 'a big global problem'

US President Barack Obama
Washington - Arab Today

US President Barack Obama said Tuesday that the revelations that powerful international politicians and businessmen have hidden money in shell companies shows tax avoidance is a global issue.

He said wealthy individuals and corporations are "gaming the system" by making use of tax code loopholes that average taxpayers do not have access to.

He also labelled "insidious" the growing practice of US companies merging with foreign firms just to cut their tax liabilities.

While enjoying the strengths of the US economy -- its workers, rule of law, and infrastructure -- such companies are not "paying their fair share," he said.

"Tax avoidance is a big global problem," Obama said, making reference to documents leaked from a Panama law firm that show thousands of anonymous companies could have been used by wealthy people to hide income.

"It's not unique to other countries, because there are people in America who are taking advantage of the same stuff."

"A lot of it is legal, but that's exactly the problem."

Obama took aim at companies exploiting weaknesses in laws to legally slash their US tax obligations, effectively undercutting the US government's income base.

On Monday, the US Treasury tightened rules against "inversion" deals, in which US companies merge with foreign firms to move their official address offshore -- but not their US operations -- to avoid paying US taxes.

Such moves, like a pending $160 billion tie-up between pharmaceutical giants Pfizer and Allergan, exploit loopholes that allow the companies to "get out of paying their fair share of taxes here at home," Obama said.

"They effectively renounce their citizenship. They declare that they're based somewhere else, thereby getting all the rewards of being an American company without fulfilling the responsibilities to pay their taxes the way everybody else is supposed to pay them," he said.

"It sticks the rest of us with the tab. And it makes hard-working Americans feel like the deck is stacked against them."

The president called for Congress to take action on tax code reforms to eliminate loopholes that allow such blatant avoidance.

Tax laws "are so poorly designed that they allow people, if they've got enough lawyers and enough accountants, to wiggle out of responsibilities," Obama said.

On Monday, the White House issued an update to its still-blocked 2012 business tax reform proposal to Congress, saying reforms are more urgently needed than before given the surge in inversion deals.

Reforms would slow inversions while better supporting investment and hiring inside the United States and cutting the costs to businesses of tax compliance, the White House said.

They would also stem the shifting offshore of an estimated $100 billion a year of corporate income to avoid taxes.

"Reform should not only eliminate undesirable incentives; it should also provide incentives to support economic activities that benefit the broader economy," the new outline said.
Source: AFP

arabstoday
arabstoday

Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

Arab Today, arab today tax avoidance is a big global problem Arab Today, arab today tax avoidance is a big global problem

 



Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

Arab Today, arab today tax avoidance is a big global problem Arab Today, arab today tax avoidance is a big global problem

 



Arab Today, arab today
Arab Today, arab today Arab tradition glitters in Colombia

GMT 12:59 2017 Thursday ,19 October

Arab tradition glitters in Colombia
Arab Today, arab today Second US judge orders freeze

GMT 08:04 2017 Thursday ,19 October

Second US judge orders freeze
Arab Today, arab today Etiquette expert underlines importance of gifts

GMT 17:52 2017 Sunday ,03 September

Etiquette expert underlines importance of gifts
Arab Today, arab today Silent Republicans have their reasons

GMT 16:55 2017 Thursday ,19 October

Silent Republicans have their reasons
Arab Today, arab today Hiring not part of Alibaba pledge

GMT 11:26 2017 Wednesday ,18 October

Hiring not part of Alibaba pledge
Arab Today, arab today
Arab Today, arab today
Arab Today, arab today Sidem reveals plan to improve education

GMT 15:52 2017 Friday ,06 October

Sidem reveals plan to improve education
Arab Today, arab today Ex-French minister Dati wants tough action

GMT 10:54 2017 Thursday ,19 October

Ex-French minister Dati wants tough action
Arab Today, arab today Massacre fears spark race

GMT 19:09 2017 Thursday ,19 October

Massacre fears spark race
Arab Today, arab today The history of solar eclipses

GMT 05:16 2017 Sunday ,20 August

The history of solar eclipses
Arab Today, arab today Mercedes says recalls 400,000 UK cars

GMT 06:56 2017 Tuesday ,17 October

Mercedes says recalls 400,000 UK cars
Arab Today, arab today Britain's Vauxhall to cut 400 jobs

GMT 10:53 2017 Sunday ,15 October

Britain's Vauxhall to cut 400 jobs
Arab Today, arab today Hussein Fahmy happy for honoring in festival

GMT 07:47 2017 Tuesday ,17 October

Hussein Fahmy happy for honoring in festival
Arab Today, arab today Climate-disrupting volcanoes helped topple

GMT 16:00 2017 Wednesday ,18 October

Climate-disrupting volcanoes helped topple

GMT 09:31 2017 Monday ,16 October

Dalal Abdel Aziz happy for “Seventh Neighbor”

GMT 18:15 2017 Monday ,16 October

British actress becomes fifth woman

GMT 18:29 2017 Sunday ,03 September

Designer produced new set of ornaments

GMT 05:11 2017 Tuesday ,17 October

Three killed, 360,000 without power

GMT 10:46 2017 Saturday ,05 August

Nanis reveals simple ideas for home renovation

GMT 23:42 2017 Monday ,16 October

Better Marriages Make

GMT 06:52 2017 Monday ,16 October

Airbus CEO says won't cling to job

GMT 17:12 2017 Monday ,07 August

Al-Shawaifi reveals secrets of total solar eclipse

GMT 20:46 2017 Thursday ,19 October

Qualcomm files lawsuits in China to ban iPhones

GMT 19:29 2017 Tuesday ,29 August

Yomna: decoration leaved positive effects
Arab Today, arab today
Arab Today, arab today
 
 Arab Today Facebook,arab today facebook  Arab Today Twitter,arab today twitter Arab Today Rss,arab today rss  Arab Today Youtube,arab today youtube  Arab Today Youtube,arab today youtube
arabstoday arabstoday arabstoday arabstoday
arabstoday arabstoday arabstoday
arabstoday
بناية النخيل - رأس النبع _ خلف السفارة الفرنسية _بيروت - لبنان
arabstoday, Arabstoday, Arabstoday