President Obama's efforts to differentiate himself from GOP challenger Mitt Romney on corporate tax reform are unlikely to sit well with the tech industry.
Although both agree on the need to cut the corporate tax rate, Obama has criticized Romney for also favoring the implementation of a territorial tax system, which calls for taxing only those earnings that occur inside the United States. Under the current U.S. tax system, corporations are taxed for what they earn domestically and abroad unless they reinvest those revenues overseas.
"If we take your advice with respect to how we change our tax code so that companies that earn profits overseas don't pay U.S. taxes compared to companies here that are paying taxes, that's estimated to create 800,000 jobs. The problem is they won't be here; they'll be in places like China," Obama said during Monday night's debate on foreign policy. It echoed a similar comment he made in last week's debate.
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