Microsoft’s Ballmer threatens to take jobs overseas if Obama tax proposal to keep jobs in US become law
You'll get $0 and be happy.
From the law on unintended consequences, or from the huffery and puffery that goes before new tax changes we have this nugget about Microsoft’s CEO Steve Balmer challenging the proposal of Barrack Obama.
“It makes U.S. jobs more expensive,” Ballmer said, according to Bloomberg News. “We’re better off taking lots of people and moving them out of the U.S. as opposed to keeping them inside the U.S.”
Last month, the president announced a plan to rewrite tax law by preventing U.S.-based multinational companies from “deferring” and keeping profits offshore, which can lower their tax bills.
Bloomberg has a simple explanation of what is going on here:
Typically, he said, a company like Microsoft develops a product like Windows in the United States and deducts those costs against U.S. income. It then transfers the technology to a subsidiary in Ireland, where corporate tax rates are lower, without charging licensing fees. The company then assigns its foreign sales to the Irish subsidiary so it doesn’t have to claim the income in the United States.
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