US Companies Like Google Use Tax Schemes

Companies like Google and Microsoft have shipped their employees overseas to countries like the Netherlands and Ireland. These companies have found a loop whole where they outsource which allows their profit to only be taxable by international tax rates. Which are as low as 2.4% compared to the 35% corporate income tax rate in the United States. Companies like Microsoft threatened the Obama administration that if they raised corporate income tax, Microsoft would move a substantial amount of their business overseas; and they followed through with their threat. This is a loop hole in the system that hasn't been overlooked completely. A bill proposed in 2007 that would be more lenient with taxes and reward businesses who don't outsource is still lingering around congress. "We can end tax breaks for companies that ship our jobs overseas and give those breaks to companies that create good jobs with decent wages here in America," as stated by President Obama.

I think there is miss-communication between large corporations and the Obama administration. There needs to be a resolve, which I feel Obama is trying to cultivate, because this is costing the US government about $60 billion dollars a year. And all of that money could be going towards education programs, health care reform, and employment problems. I understand where these corporations are coming from; however, they are not being socially responsible by disregarding how important their taxable income is for the United States and the people who benefit from it.