President Obama released hisblueprint for the federal budgetMonday. Unsurprisingly, it is expected to boost federal spending far higher than recent years.
His tenure has already witnessed a greater accumulation of federal debt than any other time in US history. It is unsustainable based on the nation’s taxing traditions. In recent days, however, Obama has hinted at a new paradigm in federal revenue collection: confiscation.
Last week, the White House floated a proposal to levy a one-time tax on the $2 trillion in foreign earnings American corporations have overseas. The United States imposes the highest corporate income tax rate in the world. It also, unlike every major nation, taxes profits on business activities conducted completely outside the US. In essence, the US tax code follows American citizens and corporations anywhere they travel around the world.
As a result of these two quirks, American corporations have built up $2 trillion of unrealized earnings, parked in bank accounts around the globe. There have been numerous proposals for a kind of “tax holiday,” allowing these profits to be brought back into the United States at a lower tax rate than the existing corporate tax. This has been done at other times in our history, but the plans have met stiff opposition from the Obama White House.
Written by MIKE FLYNN- Breitbart
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