Your Opinion: Be wary of tax code changes
Sunday, February 13, 2011
Taxpayers must be wary of President Obama’s call to simplify the United States tax code in his recent State of the Union address. While this is an admirable goal, we all would like to have a simplified tax code when filing our income taxes, achieving it is not nearly as easy or straightforward as it sounds.
For example, the president’s proposal would include measures that would double-tax American companies that are attempting to compete in the global energy market while exempting foreign competitors.
Repealing tax treatments such as the ‘dual capacity’ provisions for American energy producers would force our overseas operators to pay income taxes to the host country and then disallow credits here at home for those taxes already paid. This would stymie our attempts to attain secure and affordable sources of future energy and would cost us all in the end.
Our tax code should encourage business growth and American economic competitiveness, yet the kind of over-simplification presented in the president’s address would be in direct opposition to these goals.
Taxpayers must be very careful what they wish for — they just might get it.