Daily Tax Update - January 11, 2012: Obama To Unveil Tax Proposals Aimed At "Insourcing" Of American Jobs

OBAMA TO UNVEIL TAX PROPOSALS AIMED AT "INSOURCING" OF AMERICAN JOBS: In remarks to business leaders at a White House forum today on "Insourcing American Jobs," President Obama said that he would unveil tax proposals aimed at encouraging US firms to keep jobs at home. Obama said, "You’ve heard of outsourcing. Well, these companies are insourcing. These companies are choosing to invest in the one country with the most productive workers, the best universities, and the most creative and innovative entrepreneurs in the world, and that is the United States of America." Obama continued, "[I]n the next few weeks, we’re also going to put forward new tax proposals that reward companies that choose to bring jobs home and invest in America. And we’re going to eliminate tax breaks for companies that are moving jobs overseas. Because there is an opportunity to be had right here and right now. There are workers ready to work, right now. That’s why I set a goal of doubling our exports of goods and services by 2014 –- and it’s a goal, by the way, that we’re on track to meet; in fact, we’re a little ahead of schedule in meeting that goal."

  • In a follow up statement issued by the White House, the statement said, "In the coming weeks, the President will put forward new ways to encourage American companies to seize this opportunity to increase investment here at home and bring jobs back to America. . . . the President will put forward new tax proposals to reward companies that choose to invest or bring back jobs to the United States, and to eliminate tax advantages for companies moving jobs overseas."
  • In conjunction with today's forum, the White House released a report that details the emerging trend of "insourcing" and how companies are increasingly choosing to invest in the United States. For example, real business fixed investment has grown by about 18% since the end of 2009. In the past two years, 334,000 manufacturing jobs have been created, while manufacturing production has increased by about 5.7 percent on an annualized basis since its low in June of 2009, its fastest pace in a decade.
  • The full report can be found here.
  • The President's remarks can be accessed here.

INTERNAL REVENUE SERVICE - CIRCULAR 230 DISCLOSURE:
As provided for in Treasury regulations, advice (if any) relating to federal taxes that is contained in this communication (including attachments) is not intended or written to be used, and cannot be used, for the purpose of (1) avoiding penalties under the Internal Revenue Code or (2) promoting, marketing or recommending to another party any plan or arrangement addressed herein.

STEPTOE & JOHNSON LLP - TAX PRACTICE
Steptoe & Johnson LLP has one of the largest and most diverse law firm tax practices in the country. The practice covers the entire spectrum of federal taxation, including representation of businesses before the Congress, Treasury and the national office of the IRS; transactional planning for domestic and multinational corporations; complex audit and controversy work for corporations and other business interests contesting IRS adjustments; litigation before the Tax Court, Court of Federal Claims, district courts, courts of appeals and the Supreme Court. The firm's tax practice also encompasses all aspects of employee benefits (ERISA), executive compensation, tax-exempt organizations and charitable giving. Steptoe has an extensive state and local tax practice, representing an array of business clients on complex sales and use tax, corporate income tax and property tax matters, both advising those clients and handling audits, administrative appeals, and litigation for them. Read more information on Steptoe's tax practice.