President Barack Obama has scaled back his ambitious plan to close loopholes global companies use when accounting for taxes on profit earned overseas, according to his 2011 budget blueprint.
Obama, who has criticised corporations that keep profits overseas to avoid US tax, proposed changes he said would raise $122 billion over a decade. Last year, he had proposed loophole-closers that would raise $210 billion over 10 years.
“To encourage these (energy and manufacturing companies) and other businesses to stay within our borders, it’s time to finally slash the tax breaks for companies that ship our jobs overseas and give those tax breaks to companies that create jobs in the USA,” Obama had mentioned in his State of the Union address last week.
His plan last year drew a lukewarm response from Congress, even from his fellow Democrats, many of whom said the changes should be part of a broader overhaul of the tax code.