Center for Freedom and Prosperity Foundation
For Immediate Release
Monday, May 11, 2009
President Obama’s Deferral Plan
Will Hurt Competitiveness and Cost Jobs,
New CF&P Video Explains
(Washington, DC, May 11, 2009) A new mini-documentary released today by the Center for Freedom and Prosperity Foundation explains how President Obama’s new international tax proposal will put U.S.-based firms at a serious competitive disadvantage compared to foreign-based companies. Entitled “President Obama’s “Deferral” Proposal: Hamstringing American Companies, Reducing American Jobs,” the video explains that America’s “worldwide” tax system and high corporate tax rate already hinder American competitiveness, and that the Administration’s plan makes a bad situation even worse.
“With the United States in the mists of a recession and unemployment at unacceptable levels, any attempt to stifle the global competitiveness of U.S. firms is absurdly misguided,” said Andrew Quinlan the president of CF&P Foundation. “A lower corporate tax rate is the policy that is needed to encourage more job creation and investment in the United States.”
The narrator, Dan Mitchell, a Senior Fellow at the Cato Institute, explains that the US is one of only a handful of nations to impose “worldwide” taxation, but that “deferral” at least allows American-based companies to postpone a portion of this unfair second tax. Unfortunately, this is the policy that the President is seeking to undermine, and the video explains that the result will be that American companies lose market share around the world, and that this will mean fewer exports from America and fewer jobs in America.
The video notes that the real underlying issue that needs to be dealt with is two fold. The United States needs to move to a territorial tax system, and lawmakers should reduce the oppressive 35 percent corporate income tax, second highest in the world, in order to foster growth and prosperity.
- President Obama’s proposal to severely restrict “deferral” will cause a significant tax increase on American companies trying to earn market share in other nations. For all intents and purposes, the White House plan is protectionism, but the target is American companies rather than their foreign rivals. This Center for Freedom and Prosperity Foundation video explains why this misguided policy will reduce exports from America and reduce jobs in America.