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February 15, 2011

American Businesses Are Not Happy With Obama’s Proposed 2012 Budget

The business community is not overjoyed about the Obama administration’s proposed 2012 fiscal budget. It gives indications that there will be more than $200 billion in higher taxes for multinational firms, banks and oil and gas companies. These are mostly old proposals that have been vehemently opposed by corporate America.

The proposals include charging banks approximately $30 billion through a “financial crisis responsibility fee,” increase overseas profit taxes by $129 billion over the next decade, and gas and oil companies would lose over $46 billion in current tax breaks. American Petroleum Institute’s President and CEO, Jack Gerard, said that it doesn’t surprise them that the Obama administration is going for tax increases on the US natural gas and oil industry. He continued that he believes the increase is being proposed at one of the worst times in the economic history of the US.

American businesses are looking more toward overhauling the corporate tax code and lowering the tax rates that companies pay to the government. The White House returned that it’s still wants to work with businesses and lawmakers to overhaul the tax code.

The budget also includes a proposal to increase costs for businesses by increasing the fees companies pay the US government to insure pension plans. If the proposal is accepted, the Pension Benefit Guaranty Corp. will be allowed to raise premiums in an effort to shore up its growing deficit.

The PBGC ensures that workers who had pensions with troubled firms were able to keep most of their retirement income. The agency doesn’t get any money from taxpayers but is funded through premiums charged to employers.

Source: http://ewireinformer.com

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