Lalit K Jha, Washington, May 5 (PTI) In a move that will hit some 10 lakh Indian IT professionals and a sizable chunk of the country's BPO industry, President Barack Obama has unveiled new proposals to end tax breaks for American companies that shipped jobs overseas to countries like India.
Meeting one of his major election promises, Obama said he will end the tax incentives to those US companies which created jobs overseas in places like Bangalore. Instead, the incentives would now go to those creating jobs inside the US.
"For years, we've talked about ending tax breaks for companies that ship jobs overseas and giving tax breaks to companies that create jobs here in America. That's what our budget will finally do," Obama said yesterday at the White House announcing the international tax policy reform.
"We will stop letting American companies that create jobs overseas take deductions on their expenses when they do not pay any American taxes on their profits," he said.
Obama said his administration will use the savings to give tax cuts to companies that are investing in research and development in the country to jump start job creation, foster innovation, and enhance America's competitiveness. PTI
Say no to Bangalore, yes to Buffalo: Obama
Lalit K Jha
Washington, May 5 (PTI) 'Say no to Bangalore and yes to Buffalo,' seems to be the latest mantra of US President Barack Obama as he struggles to bring the ailing American economy back on track.
Meeting one of his major election promises, Obama yesterday announced end to years of tax incentives to those US companies which create jobs overseas in places like Bangalore. Instead, the incentives would now go to those creating jobs inside the US, in places like the Buffalo city -- bordering Canada in upstate New York.
"We will stop letting American companies that create jobs overseas take deductions on their expenses when they do not pay any American taxes on their profits," Obama said at White House announcing the international tax policy reform.
"We will use the savings to give tax cuts to companies that are investing in research and development here at home so that we can jump start job creation, foster innovation, and enhance America's competitiveness," Obama said.
The new tax laws are expected to majorly hit countries like India, China and Philippines, where US companies have been outsourcing their work.
Hitting hard at the current taxation system, to which he had been very critical since his election days and as a Senator, Obama said: "It's a tax code that says you should pay lower taxes if you create a job in Bangalore, India, than if you create one in Buffalo, New York." PTI
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Meeting one of his major election promises, Obama said he will end the tax incentives to those US companies which created jobs overseas in places like Bangalore. Instead, the incentives would now go to those creating jobs inside the US.
"For years, we've talked about ending tax breaks for companies that ship jobs overseas and giving tax breaks to companies that create jobs here in America. That's what our budget will finally do," Obama said yesterday at the White House announcing the international tax policy reform.
"We will stop letting American companies that create jobs overseas take deductions on their expenses when they do not pay any American taxes on their profits," he said.
Obama said his administration will use the savings to give tax cuts to companies that are investing in research and development in the country to jump start job creation, foster innovation, and enhance America's competitiveness. PTI
Say no to Bangalore, yes to Buffalo: Obama
Lalit K Jha
Washington, May 5 (PTI) 'Say no to Bangalore and yes to Buffalo,' seems to be the latest mantra of US President Barack Obama as he struggles to bring the ailing American economy back on track.
Meeting one of his major election promises, Obama yesterday announced end to years of tax incentives to those US companies which create jobs overseas in places like Bangalore. Instead, the incentives would now go to those creating jobs inside the US, in places like the Buffalo city -- bordering Canada in upstate New York.
"We will stop letting American companies that create jobs overseas take deductions on their expenses when they do not pay any American taxes on their profits," Obama said at White House announcing the international tax policy reform.
"We will use the savings to give tax cuts to companies that are investing in research and development here at home so that we can jump start job creation, foster innovation, and enhance America's competitiveness," Obama said.
The new tax laws are expected to majorly hit countries like India, China and Philippines, where US companies have been outsourcing their work.
Hitting hard at the current taxation system, to which he had been very critical since his election days and as a Senator, Obama said: "It's a tax code that says you should pay lower taxes if you create a job in Bangalore, India, than if you create one in Buffalo, New York." PTI
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