RNC Research

SHOT: John Engler, President Of The Business Roundtable, Said Obama Has Told The Business Community That He Might Back Territorial Taxation. “The president of a group of more than 200 CEOs said on Thursday that President Barack Obama had told the business community last month he might back a territorial tax system, which would exempt offshore profits from taxation. Corporate America is pushing for the United States to move to such a regime, which they say would make domestic business more competitive. John Engler, president of the Business Roundtable, said that in meetings with Obama during a year-end budget standoff between the White House and Congress, the president left the impression he was moving in that direction.” (Kim Dixon, “Obama Might Back Territorial Tax System, Business Chief Says,” Reuters, 1/31/13)

CHASER: During The Campaign, Obama Criticized Gov. Romney’s Plan To Implement Territorial Taxation, Saying It Would “Actually Encourage Companies To Shift More Of Their Operations To Foreign Tax Havens, Creating 800,000 Jobs In Those Other Countries.”OBAMA: “We have not found any serious economic study that says Governor Romney’s economic plan would actually create jobs – until today. I’ve got to be honest. Today we found out there’s a new study out by non-partisan economists that says Governor Romney’s economic plan would, in fact, create 800,000 jobs. There’s only one problem:  The jobs wouldn’t be in America. They would not be in America.  They’d be in other countries. By eliminating taxes on corporations’ foreign income, Governor Romney’s plan would actually encourage companies to shift more of their operations to foreign tax havens, creating 800,000 jobs in those other countries.” (President Barack Obama, Remarks By The President At A Campaign Event, Cincinnati, OH, 7/16/12)

• At A Campaign Event, Biden Also Criticized Territorial Taxation As One That Will Create 800,000 Jobs Abroad. BIDEN:“In addition to that, now what has Governor Romney called for? Governor Romney has called for – his great concern about jobs – he’s called for a new – what they call, and a lot of you students will know this – a territorial tax. And that means that any company who picks up or starts off an American company in China or anywhere else in the world will only have to pay the taxes in that country, and never have to pay a penny in tax for any American - for - one single penny in American taxes. Well, let me tell you what that means.  A study shows that, if we have that territorial tax, it will create 800,00 jobs. All of them in China, Indonesia, all of them abroad.” (Vice President Joe Biden, Remarks At A Campaign Event, Eau Claire, WI, 9/13/12)

Criticizing Gov. Romney’s Territorial Tax Plan Became “One Of The Central Criticisms Barack Obama Like[d] To Hurl At Mitt Romney.” “It’s one of the central criticisms Barack Obama likes to hurl at Mitt Romney: The GOP presidential nominee supports tax policies that would ship jobs overseas. But there are growing questions about whether Romney and the Obama administration might have more in common when it comes to international taxation than their campaign rhetoric would suggest.” (Steven Sloan, “Getting Territorial? Administration’s Tax Message Seems Mixed,” Politico, 10/25/12)