In the State of the Union address to Congress on January 24, President Obama proposed a minimum tax for millionaires and for multinational companies on their overseas profits. "Tax reform should follow the Buffett rule: If you make more than $1 million a year, you should not pay less than 30 percent in taxes," the President said.
President Obama also reaffirmed his commitment not to raise taxes on those earning less than $250,000. The President also called for Congress to extend the payroll tax cut through the end of 2012.
In his address, President Obama announced measures to discourage outsourcing of U.S. jobs and to reward businesses that create jobs here in the U.S. The President said, "No American company should be able to avoid paying its fair share of taxes by moving jobs and profits overseas. From now on, every multinational company should have to pay a basic minimum tax."
To create incentives for manufacturing in the U.S., the President proposed to lower tax rates for manufacturers and to double the tax deduction for high-tech manufacturers that make their products in the U.S.
The President said, "My message is simple. It is time to stop rewarding businesses that ship jobs overseas, and start rewarding companies that create jobs right here in America. Send me these tax reforms, and I’ll sign them right away."
It will be interesting to see how the President’s “Blueprint for An America Built to Last” will be received in the sharply divided Congress.
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