President Obama is proposing raising more than $100 billion in new taxes from American businesses by limiting their ability to defer tax on profits earned abroad. The President believes that by penalizing them, U.S. companies will have more incentive to keep jobs in the U.S. rather than shipping them overseas. Of course, that isn’t how it works. In fact, this proposal could put U.S. companies out of business, by putting them at a competitive disadvantage to their international counterparts. But this is all pretty complicated, so watch this video, courtesy of The Tax Foundation, for an easy two-minute explanation.
[youtube]http://www.youtube.com/watch?v=hapfclt6mFY[/youtube]
