International Taxes: Follow The Money: The Obama administration is now moving its attention away from ending the economic crisis, and is focusing on ways to fund the cure - and fund the rest of the nation’s spending, too. The administration has released its fiscal year 2010 revenue proposals, and there are some bold, ambitious plans in it for changing the way multinational firms figure their U.S. taxes. One part of the plan: reduce or eliminate foreign tax benefits that corporations have long enjoyed.
It’s still early in the horse-trading game. Companies may have to live with some dire consequences to their business models that have developed over the years, but they also might get something in return: maybe a lower marginal tax rate or increased tax benefits for new hires or investment. While foreign earnings remain the tax target of choice, however, it’s wise to figure which companies are at risk of having the biggest changes in their multinational way of life - and what consequences their investors might face aside from just higher income taxes. There are plenty of clues firms give about their foreign operations, but they’re veiled and rarely cohesive. This is a great time to get familiar with them, and in this report, we show you how to find them and evaluate them.