What is Tax Deferral?
May 13, 2009
New Video and New Study Aim to Educate Public on Important Issue Involving America’s Global Economic Competitiveness
With President Obama recently proposing to raise more than $100 billion in new tax revenues from U.S. businesses by restricting their ability to defer paying taxes on profits earned abroad, the Tax Foundation today released a two minute video on YouTube aimed at educating the public about tax deferral and how it impacts America’s global economic competitiveness.
Also, a new Tax Foundation report argues that the Obama Administration’s proposal to end tax deferral for income earned abroad by American businesses is a step in the wrong direction. The report is Tax Foundation Special Report No. 167, “Bank Secrecy, Tax Havens and International Tax Competition,” by senior research fellow Robert Carroll, Ph.D. Carroll acknowledges the need to target tax evasion, as the proposal does, but he argues that ending tax deferral is unrelated to bank secrecy or tax evasion and would put U.S.-based companies at a competitive disadvantage in their competition with multinational firms based in other major trading nations.