Yet Another Wrong Move

US corporations, with a 35% tax rate, are already more heavily taxed than companies in most other countries. Yet Obama believes that repealing the IRS rules, which he calls "loopholes," which allow them to defer taxes on foreign earnings will bring even more money into the federal coffers.

Sen. Orrin Hatch, a member of the congressional Joint Committee on Taxation begs to differ: "When taxes were reformed in 1986, the United States eliminated deferral for the shipping industry, and in short order, all of the shipping industry fled this country and established headquarters abroad. The same thing will happen across the board if we repeal deferral."

The Washington Times reports that a study released today and authored in part by a Clinton appointee, Robert Shapiro, supports Hatch’s claim. According to the study, Obama's proposed tax law change will actually put American jobs at risk and lower tax revenues.