Administration Recycles International Tax Proposals In FY2012 Budget
Douglas S. Stransky was quoted in the May 2011 issue of Journal of International Taxation in an article entitled "Administration Recycles International Tax Proposals In FY2012 Budget." In this article, Mr. Stransky notes that the international tax proposals in the FY2012 Budget "were unworkable when proposed in the 2011 Budget and they are unworkable now." Mr. Stransky further comments that "the current international tax proposals will have adverse ramifications for U.S. companies, American workers, and the economy as they increase taxes on the very companies that the Obama Administration [recently] challenged to create more U.S. jobs. In short, these proposals, if enacted, would increase costs for U.S. companies, which will not lead to the creation of more U.S. jobs. Thus, these proposals seem to be in conflict with the President's stated desire of reducing U.S. corporate taxes and making U.S. companies more competitive. Although this further clarification is welcome, the proposal would continue to impact cyclical industries disproportionately because certain industries, such as the semi-conductor industry, earn tremendous profits during one business cycle, but have significant losses in another."