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Clinton Administrations Proposal To Increase Taxes For Multinational Corporations

Good Essays
My topic is the increase if the taxes which Clinton Administration is

planning. This increase in taxes will target "multinational Corporations, end

the favored tax treatment of extra long term bonds", It will also raise capital

gains taxes by “changing the rules for computing the cost basis of securities

when they are sold at a profit”. What this will do is increase the taxes for the

rich and will decrease the difference between the rich and the poor. The plan is

intent on cutting the middle class tax and finance higher education (yeah right).

The current tax law decreases the Federal Treasury Revenue and makes the economy

less efficient or less competitive.

The multinational tax would disallow multinationals to assume half of

their goods are foreign even if they are made in the US. Thus they could export

to a country with low taxes and thus pay less taxes. This change would bring an

increase of 7.9 Billion in corporate taxes over the next 5 years.

This withdraws a lot of money from the economy and may thus decrease

demand for goods, as people have less money to spend. The multinationals would

employ many people and with and increase in their cost (tax is a type of cost)

they would be forced to decrease the average amount of wages which the their

employees received. This may take the form of decreased raises, or the laying

off of some people. This would thus decrease aggregate demand for goods

Nationally (as Multinationals would employ people in th...
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