Promises, promises

Offshore corporate tax abuse accounts for a loss of around a $100 billion to the US each year. So of course President Obama singled out closing those loopholes as part of an effort to reform the tax code, make sure everyone paid there fair share, no one shirked their duties, and that US tax law was too often "written by well-connected lobbyists on behalf of well-heeled interests and individuals". So now the time has come to do something about it and what's the message? "Keep shirking" and "You sure so have a pretty good point there well-connected interests. Let's keep doing things on behalf well-heeled interests and individuals." Why?

/sound of footsteps running away, car door being slammed, and screeching car tires.

The Wall Street Journal reports Tuesday that the Obama administration has shelved the proposal in the face of intense pressure from business. A key part of the tax plan, and a key beef of industry, was a proposal to reform the part of the tax code that allows companies to defer paying taxes on profits earned from overseas investments. Now the White House will defer reform until later, per the WSJ:

Obama aides say the administration has set the idea aside for now, but may return to it as part of a broader tax overhaul sometime next year. The White House had billed the proposed change as an overdue fix to the tax code and potentially a key revenue-raiser.
...
In response to Obama's statement in May, U.S. business groups including the U.S. Chamber of Commerce, the Business Roundtable and the National Association of Manufacturers announced a new alliance called the Promote America's Competitive Edge Coalition. Tuesday's news is something of a payoff.

And why not? It isn't like we're running massive deficits or anything. I mean anytime something is both popular with the Chamber of Commerce and the financial network TV goons it has to be a good thing for Americans. Besides this is just a logical move for an Administration that pulled the nominations of dozens of qualified cabinet and departments heads because of small tax issues in an attempt to set an example.

But hey, they're totally still committed to tax reform. They...just have a lot on their plate. Plus, have you ever heard the CEO of GE screech about taxes during a White House luncheon? It's absolute torture. Surely this is an issue the business community wont care a tinker's cuss about in a few months when the administration says they'll get to it. I'm sure it'll go over even better as part of a larger reform package that will totally pass the Senate. This is great news. Bnag up job, Barry. Way to stick to your guns.