This John Kerry proposal to cut corporate taxes by 5% and eliminate overseas operations loopholes sure sounds like a winner to me. I'm not sure exactly what the Bush equivalent proposal is (if there is one), but I'm all for this getting enacted.

Current tax laws allow American companies to defer paying taxes on income earned by their foreign subsidiaries until they bring it back to the United States. If they keep the money abroad, they avoid paying U.S. taxes entirely.

Kerry would require companies to pay taxes on their international income as they earn it rather than being allowed to defer it. The new system would apply to profits earned in future years only, not retroactively.

He also would allow companies to defer taxes when they locate a business in a foreign country that serves that nation's markets. A U.S. company seeking the tax break could open a car factory in India to sell cars in India, for example, but could not relocate abroad to sell cars back to the United States or Canada.

UPDATE: Donald Luskin doesn't like Kerry's plan.

« BTK Update | Home | Books About The BTK Serial Killer »