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Obama's proposed international minimum tax for US companies with overseas profits

President Obama in his State of the Union message on Tuesday night proposed creating an international minimum tax that companies with overseas profits would have to pay. The Obama administration has not yet specified a rate but the principle will be included in a corporate tax package that will be released in February with the president’s budget plan for the 2013 fiscal year. Since the 2008 presidential campaign, Obama has argued for incentives for US multinationals to inshore jobs from overseas while providing disincentives for outsourcing. The latest proposals that will be sent to a gridlocked Congress in an election year are what Americans term DOA (dead on arrival). However, in the fiscally challenged years ahead, tax reform is likely to move up the congressional agenda and the proposed minimum tax is a bigger threat to Ireland than European Union plans to have US firms pay tax on their sales in for example Germany to the German government rather than the Irish government.
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