Obama Was Right On The Tax CodePosted By James Brown |
Rod Kaufman said:
http://www.politifact.com/truth-o-meter/statements/2012/oct/08/barack-obama/obama-says-tax-code-rewards-firms-shifting-jobs-ov/
I wondered about that one since whatever Romney said about it seemed to be accepted like gospel around here...
Hi Rod:
This example shows what is wrong with modern phenomenon of "fact checkers". In these so-called fact check pieces "Truth" is based upon an underlying premises that can be set, defined and manipulated according to a political agenda. this article is a perfect example.
According to the Polifact article you cite,
[COLOR="Blue"]"In the narrowest sense possible, Romney’s rebuttal is accurate. There is no clause in the tax code that rewards a company when it relocates production beyond U.S. borders. But if a plant moves at all, whether it’s from Ohio to Tennessee or Ohio to Malaysia, it is eligible for deductions.
"There is certainly a tax break for U.S. companies that move operations or people abroad," said Gary McGill, director of the Fisher School of Accounting at the University of Florida. "It is simply a business expense like any other legitimate expense."[/COLOR]
Clearly, the only tax break for "moving over seas" is the normal tax deduction all companies take for all legitimate business expenses.
I would submit that the Obama intends his audience to think that there is something "special" in the tax code specifically rewarding companies that ship jobs overseas. If that is not Obama's point, what in particular is he going to do to close this loophole he keeps talking about? Is he going to re-write the code to eliminate the deduction of business expenses altogether? Hardly. Is he going to try to carve out an exception for business expenses related to overseas operations? Fat chance. We rely upon a world economy and Obama knows it.
Since I believe that Obama intends for us to incorrectly think that corporations who ship jobs overseas get "special" tax treatment under the law, and since that is obviously not the case, I'd say that his debate point is False.
The lefties at Polifact think that the mere fact that all business expenses, including overseas relocation expenses, are deductible means that the President's point is True. Apparently they think that Obama was trying to score debate points by describing the mundane 100 year old fact that business expenses are deductible before corporate tax? :S
If Polifact's version is accepted, then what loophole is Obama going to close?
Clearly this is one of those situations where the party defining the premises causes the statement to be either true or false. I feel strongly that I am right and Polifact is wrong on this one, but that could be my bias showing... 8)
Jim