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Obama Demands Overseas Banks Reveal U.S. Taxpayer Holdings

UPDATED at 11:57 A.M.

President Obama said that he wants overseas banks to generate IRS 1099 forms detailing how much American taxpayer money they're holding, in a White House announcement of new tax policies ended moments ago.

If they don't, "we will assume they are sheltering" American income that should be taxed, Obama said.

Obama aims to "restore fairness and balance" to the U.S. tax code, he said.

(Obama made no mention of the high U.S. corporate tax rate that incentivizes U.S. companies to go overseas.)

His new policies will save U.S. taxpayers $210 billion in previously uncollected taxes, Obama said.

Obama said his new policies will stop letting American companies take deductions on their expenses when they pay no U.S. taxes on their profits.

He also said he hopes to close "one of the biggest tax loopholes," one that he said enables subsidiaries of U.S. companies to tell the IRS they are paying taxes overseas then tell foreign governments they are paying taxes elsewhere.

Obama was preceded by Treasury Secretary Tim Geithner, whose agency oversees the IRS.

Geithner: We're Hiring 800 new IRS Agents

11:37 A.M.: Treasury Secretary Tim Geithner said new rules coming out of the IRS will end "the indefensible tax breaks and loopholes" that allow corporations to "evade the rules the rest of America lives by."

Geithner pointed to tax breaks that incentivize U.S. companies to invest overseas instead of the U.S.

Geithner said the IRS is added 800 new employees whose job will be to "detecting" companies that "unlawfully hide assets and incomes."

Geithner nearly had his Senate confirmation tripped up in January because he failed to pay back taxes. (Other Obama nominees have had their own tax problems.)

-- Frank Ahrens
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By Frank Ahrens  |  May 4, 2009; 11:57 AM ET
Categories:  The Ticker  | Tags: Tim Geithner, taxes  
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Comments

If he does nothing else, with this one act, Obama has done more to help our country than any other President. Foreign deposits have always been the refuge of thieves, Madoff's, and Enrons.

Posted by: backsmith2 | May 4, 2009 2:06 PM | Report abuse

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