Time: 9:15 p.m. CEST
President Barack Obama announced on Tuesday he is pleased that “the Treasury Department has been taking news actions to prevent more corporations to take advantage of one of the more in tax loophole and fleeing the country just not to pay their taxes.” Obama said, “Treasury actions would make more difficult and less lucrative to companies to exploit this particular corporate inversions loophole; only Congress can close it for good.” Obama, who opposes corporate inversion, or removing the companies headquarters in the countries with lower taxes, explained that way some of the corporations, as he said work.
“They keep most of the business here in the United States, because they benefit of the American infrastructure and technology, rule of law, our research, our developments and our patents, from American workers who are best in the world, they are effectively announcing their citizenship, they declare are based somewhere else, they are getting rewarded for being American companies, without being responsible to pay our taxes, the way, as everybody is responsible to pay them.”
According to Obama, “This is not just billions of dollars, not just hundred billions of dollars, it is trillions of dollars worldwide and it can make a difference what we can make here.” After Obama commented Iran’s sanctions, the President generally comment the “global tax avoidance problem,” usually broad up in G7 or G-20 meetings.
“There has been some progress made, it has been coordinating between tax authorities for the countries, so that we can make sure that we are catching some of the most egregious examples,” Obama said. One of the issues is that many of the profits, which are not subject of the tax, are legal because of the loopholes in the United States or other countries. “
As I said before, one of the big problems that we have is that a lot of this stuff is legal, not illegal and what the United States and other countries lead by examples in closing some of these loopholes and provisions, in many cases you can trace, what is taking place, but you cannot stop it. There is going to be some illicit funds movement around the world, but we should not make it easy, we should not make it legal engage in transactions to avoid taxes,” Obama said.
Obama thinks “it is important that Treasury reacted,” but it is something that is different than what happened in Panama.
As Obama said, “The corporate inversion is a financial transactions that is brokered by major 400-500 companies to avoid paying taxes, but basic principle of us making sure that everybody is paying fair share and we are not having only few people that are having advantage of tax provisions.” As the President said, “we do need to pay attention to that because as I just said this is all net of flows of money that could be spend on the pressing needs here in the United States.”