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Adminstration's Budget includes Tax Increases on Firms That Move Jobs, Profits Overseas

The Obama administration called for higher taxes Feb. 13 on corporations that shift jobs and profits overseas, while offering help to companies that keep business in the United States, in the it's fiscal year 2013 budget.

The administration called for U.S. taxes on excessive profits from the offshore use of transferred intangibles.

The plan also called for a credit against income tax equal to 20 percent of the expenses paid or incurred in connection with “insourcing” a U.S. trade or business. Deductions for expenses paid or incurred in connection with “outsourcing” a U.S. trade or business would be disallowed.

Also in the Green Book, the administration proposed disallowing the deduction for domestic production activities for oil and other fossil fuel production.

In a fact sheet, the administration said that in addition to stopping transfer pricing abuses, the budget would delay the deduction for the interest expense attributable to overseas investment.

Read more at: Tax Times blog

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