Targeting tax havens
President Obama has proposed outlawing offshore tax-avoidance techniques that U.S. corporations use to avoid billions in taxes. Obama called for limits on corporations’ ability to defer U.S. taxes on foreign profits and to shift profits to low-tax countries, out of reach of U.S. tax collectors. U.S.-based multinationals paid $16 billion in taxes on foreign profits of $700 billion in 2004—a 2.3 percent tax rate. The top corporate tax rate is 35 percent.
In a rare retraction, the Pentagon’s internal watchdog has withdrawn a report that cleared the Bush-era Defense Department of spreading propaganda. Under the program, the Pentagon recruited retired officers to serve as analysts on news programs, and then fed them with talking points. This week, the inspector general said the original report clearing the Pentagon of any wrongdoing was riddled with inaccuracies.