The American Outsource Corporate Headquarters Act Of 2009

Beware, this is what's coming:

A staple of President Obama's stump speech during the 2008 Presidential campaign was a promise to end tax breaks for corporations that ship jobs overseas. On May 4, the Obama administration rolled out its proposal to do just that. While Obama is correct that US tax policy discriminates against corporations that produce in the United States, his proposed solution should be called "The Outsource Corporate Headquarters Act of 2009."

On the surface, Obama's plan sounds like a good idea. Currently, US corporations can defer, indefinitely, paying US taxes on profits produced abroad while deducting foreign investment expenses from their US income taxes. As a result, they pay lower tax rates if they produce abroad than if they produce in the United States.

America's 35% corporate tax rate is the second highest in the world. Emerging markets have much lower rates. Ireland's corporate tax rate, for example, is only 12.5%. If an American corporation produces in Ireland, it only pays 12.5% tax on its income, while if it produces in America it pays 35%.

Read the link for more details, and some proposed solutions. I like this video from the Center for Freedom and Prosperity, which explains the whole thing well:

Business owners know what this tax plan means -- that's why they've been laying off and tightening their belts for months -- and it will not help the American economy, nor create or save American jobs. If you voted for hope-n-change, you voted for an economic that change much of what makes America work, leaving you only with an empty hope that will never be fulfilled.

Sucks, doesn't it?

There's my two cents.