President Barack Obama and Treasury Secretary Timothy Geithner have outlined moves aimed at closing corporate tax loopholes that encourage U.S. companies to shift income and jobs to other countries.
The Treasury pointed out in announcing the initiative that in 2004, the most recent year for which data is available, U.S. multinational corporations paid about $16 billion of U.S. tax on approximately $700 billion of foreign active earnings - an effective U.S. tax rate of about 2.3 percent. In addition, a January 2009 report by the Government Accountability Office found that of the 100 largest U.S. corporations, 83 have subsidiaries in tax havens.
Obama and Geithner said the reforms would raise $210 billion over the next 10 years.
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