P&G Chief Hammers Obama Tax Proposal
In an opinion column in today's Cincinnati Enquirer, the chief executive of Cincy-based Procter & Gamble writes that one of President Obama's taxes in the proposed budget could cripple U.S. businesses operating overseas, such as P&G.
Here is how P&G chief executive A.G. Lafley explains it:
"Today, American companies can defer payment of U.S. taxes on foreign income until those funds are brought back into the U.S. This is similar to our personal IRA investments, where we defer paying taxes on earnings until we withdraw them. Industrialized countries around the world apply a similar principle to help maintain a level playing field.
"The Obama administration budget suggests repealing or severely limiting this widely accepted practice in order to raise more corporate tax revenue. This single measure would have a dramatic, negative impact on the net income of American companies like P&G, and put us at a substantial disadvantage to our foreign competitors like L'Oreal, Unilever, Nestle and Kao. It would be like penalizing a winning U.S. Olympic runner by tacking on extra seconds to his time just because he's American, and causing him to lose the race to his competitors from other countries."
P&G is a huge maker of household products, counting Tide, Clairol, Pampers and Gillette among its dozens of brands.
March 30, 2009; 3:51 PM ET
Categories: The Ticker | Tags: Obama, budget, p&g, procter & gamble, taxes
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