Obama to end tax breaks for firms creating jobs abroad

Source :IANS, Sep 9, 2010, 10.15am IST

WASHINGTON: Accusing opposition Republicans of pushing bankrupt economic policies and putting politics ahead of national welfare, President Barack Obama has vowed to end Bush era tax cuts encouraging companies to "create jobs and profits in other countries".




"I think if we're going to give tax breaks to companies, they should go to companies that create jobs in America - not that create jobs overseas," he said on a mid-term campaign in the perennial swing state of Ohio Wednesday.



"That's one difference between the Republican vision and the Democratic vision. That's what this election is all about," he said vowing to stand by his plan to allow the Bush tax cuts to expire for people making over $250,000, while extending the cuts for those making less.



Obama also pushed a new $350 billion plan to lift the sagging economy, including $200 billion in tax cuts for businesses to purchase new equipment and write off 100 percent of new investments through the end of 2011.



The president also highlighted a $50 billion proposal for infrastructure investment, as well as $100 billion to permanently extend tax credits to businesses for research and development.



Republicans are trying to ride a wave of "fear and anger all the way to Election Day", Obama said. The election is about "fear versus hope (and) the past versus the future. It's still a choice between sliding backward and moving forward. That's what this election is about. That's the choice you'll face in November."



Obama spoke longingly of a proud Republican tradition of producing "serious leaders for serious times". Current Republican leaders, he said, are more interested in "playing games and scoring points".



Giving examples of different Democratic and Republican approaches, Obama said: "One of the keys to job creation is to encourage companies to invest more in the United States. But for years, our tax code has actually given billions of dollars in tax breaks that encourage companies to create jobs and profits in other countries."



"I want to change that," he said amidst applause. "We see a future where we invest in American innovation and American ingenuity."



"Because I don't want to see new solar panels or electric cars or advanced batteries manufactured in Europe or Asia. I want to see them made right here in the US of A by American workers," he said.