Businesses Dodge Tax Bill

Earlier, the Obama Administration had proposed taxes on multinationals in order to help raise $200 billion in revenue. However, at the urging of big business, that plan has been shelved. Businesses have managed to dodge a tax bill that some were concerned would tax businesses at a time when the recession is causing problems for the economy. The fact that earnings news is improving apparently doesn’t provide enough of an incentive to change things.

The $200 billion proposal would have changed the way overseas profits would be taxed, resulting in higher taxes for large multinational companies doing business in other countries. Business executives had traveled to Washington over the past couple of months to meet with Congressional representatives and with members of the Obama Administration in order lobby against the taxes.

Apparently they were successful. While the Obama Administration hasn’t said its giving up on the plan, it has said that it will shelve the plan for now. Instead, the $200 billion plan will be held in abeyance until the economic situation improves and global trade and profits pick up.

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