Obama's plan to close tax loopholes

[0:01] ..." Let's begin with a simple promise nobody likes paying taxes. Particularly in times of economic stress. But most Americans meet their responsibilities because they understand that it's an obligation of citizenship. Necessary"...

[3:07] ..." shutting down overseas tactics that let companies set up operations. To avoid paying taxes in America. That's what our budget wolf finally do. On the campaign nice to talk about the outrage of a building in"...

[3:46] ..." subsidiaries of some of our largest companies tell -- RS. That they're paying taxes abroad. -- foreign governments that they're paying taxes elsewhere. And avoid paying taxes anyway. Closing missing a -- will save taxpayers tens of billions of dollars. Money that can be spent on reinvesting. In America."...

[5:43] ..." 95% of working families. And were providing -- two 4500 dollar annual tax credit to put the dream of a college degree or advanced training within reach for more students. We're providing a tax credit worth up to 8000 dollars for first time home buyers to help more Americans own. A piece of the American dream and to spring from the housing market. So the steps I -- announcing today will help. Let's deal with some of the most egregious examples of what's wrong with"...

[0:01]" Let's begin with a simple promise nobody likes paying taxes. Particularly in times of economic stress. But most Americans meet their responsibilities because they understand that it's an obligation of citizenship. Necessary to pay the cost of our common defense and our mutual well be. And yet even as most American citizens and businesses meet these responsibilities there're others. Were shirking -- And many are aided and abetted by a broken tax system. Written by it -- connected lobbyists on behalf of well heeled interests and individuals. The tax code full of corporate loopholes that makes it perfectly legal for companies to avoid paying their fair share. The tax code that makes an all too easy for a number of a small number of individuals and companies to abuse overseas tax havens to avoid paying any taxes at all. And it's the tax code that says you should pay lower taxes if you greater job. In Bangalore India. Then if you create one in Buffalo, New York. Now understand one of the strengths of our economy is the global reach of our business. And I want to see our companies remain the most competitive in the world. But the way to make sure that happens is not to reward our companies for moving jobs off harsher words. Or transferring profits overseas tactics this is something that I talked about again and again during the course of the campaign. The way we make our business competitive. Is not to reward American companies operating overseas within roughly 2% tax rate on foreign profits. Rate the cost tens the cost taxpayers tens of billions of dollars a year. The way to make America is competitive is not to let some citizens and businesses not their responsibilities more ordinary Americans. Pick up the -- Unfortunately that's exactly what we're -- These problems have been highlighted by chairman Charlie Rangel and Max Baucus. By leaders like senator Carl Levin and congressman Lloyd Doggett. And now's the time to finally do something about. And that's why today I'm announcing a set of proposals to crack down on illegal overseas tax invasion. Close loopholes. And make it more profitable for companies to create jobs here in the United States. For years we've talked about ending tax breaks for companies that ship jobs overseas and giving tax breaks to companies -- create jobs here in America. That's what our budget will finally do. We will stop letting American companies the create jobs overseas take deductions on their expenses. When they do not pay any American taxes on the profits. We will use the savings to give tax cuts to companies that are investing in research and development here at home. That we can jump start job creation. Foster innovation and enhance America's competitiveness. For years we've talked about shutting down overseas tactics that let companies set up operations. To avoid paying taxes in America. That's what our budget wolf finally do. On the campaign nice to talk about the outrage of a building in the Cayman Islands that had over 12000 business. Businesses claim this building of their headquarters. I've said before either this is the largest building in the world or the largest tax scam in the world. -- the American people. Know which -- The kind of tax scam that we need to end. That's why we're closing one of our biggest tax loopholes. To loophole that -- subsidiaries of some of our largest companies tell -- RS. That they're paying taxes abroad. -- foreign governments that they're paying taxes elsewhere. And avoid paying taxes anyway. Closing missing a -- will save taxpayers tens of billions of dollars. Money that can be spent on reinvesting. In America. And -- restore fairness to our tax code by helping ensure that all our citizens and our companies are paying what they should. Now for years we've talked about stopping Americans from illegally hiding their money overseas. And getting tough with. The financial institutions that let them get away with a the Treasury Department and the IRS. Under. Secretary -- is leadership. And commissioner children's. Are already taking far reaching steps to catch overseas tax cheats but they need more support. That's why I'm asking congress to pass some common sense measures. One of these measures would -- IRS know how much income Americans are generated in overseas accounts by -- wiring overseas banks to provide. 1090 nines for their American clients dislike Americans have to do for their bank accounts here in in this country. If financial institutions won't cooperate with us we will assume that there -- sheltering money in tax havens and act accordingly. And to ensure the RS has the tools it needs to enforce our laws. We're seeking to hire nearly 800 more IRS agents to detect and pursue American tax evaders abroad. So all -- all these and other reforms will save American taxpayers 210. Billion dollars over the next ten years. Savings we can use to reduce the deficit. Cut taxes for American businesses that are playing by the rules and provide meaningful relief for hardworking camps. That's what we're don't. Reporting a middle class tax cut in the pockets of 95% of working families. And were providing -- two 4500 dollar annual tax credit to put the dream of a college degree or advanced training within reach for more students. We're providing a tax credit worth up to 8000 dollars for first time home buyers to help more Americans own. A piece of the American dream and to spring from the housing market. So the steps I -- announcing today will help. Let's deal with some of the most egregious examples of what's wrong with our tax code and it will help -- strengthen some of these other efforts. It's a down payment on the larger tax reform we need to make. Our tax system simpler and fairer and more efficient for individuals and corporations. -- will take time to undo the damage a distorted provisions that were slipped in our tax code by lobbyists and special interest. But with the steps I'm announcing today. We are beginning to crack down on Americans were bending or breaking the rules were helping to ensure that all Americans are contributing their fair share. In other words were beginning to restore fairness and balance to our tax that's what I promised I would do during the campaign. That's what I'm committed to doing as president. And that is what I won't work -- members of my administration. And members of congress to accomplish in the months and years ago thanks very much that's."