Microsoft fights increasing corporate taxes

The US is proposing to tax what US corporations earn overseas. If Obama wants US businesses to move work here from overseas he should lower our corporate taxes, not raise them. US corporate taxes are among the highest in the world. Daily Tech It takes an incredibly powerful company to threaten the U.S. government in hopes of impacting a significant decision, but that's precisely what Microsoft is doing. Microsoft CEO Steve Ballmer made headlines when he publicly attacked President Barack Obama's plan to cut tax breaks on U.S. companies' foreign profits, a plan which is currently awaiting Congressional approval.
 
Mr. Ballmer suggests that if the tax succeeds, Microsoft may begin a significant move out of the U.S., taking with it tax revenue and jobs. He states, "It makes U.S. jobs more expensive. We’re better off taking lots of people and moving them out of the U.S. as opposed to keeping them inside the U.S."
 
The plan, proposed by President Obama on May 4, seeks to help raise tax revenue and balance the budget by rolling back $190B USD in tax breaks for offshore companies over the next decade. Microsoft is not the first to oppose the measure -- the National Foreign Trade Council, the U.S. Chamber of Commerce and the Business Roundtable are among the numerous others to voice their disapproval.
 
Previously, companies could defer paying corporate rates as high as 35 percent on most types of foreign profits, contingent that the company invests the money overseas. The idea was that foreign profits are not the domain of the U.S. President Obama disagrees, arguing that U.S. corporations' profits are U.S. earnings. He believes that by taxing foreign profits, companies will be more likely to invest in the U.S., rather than shelter their money overseas.