In a move that will hit some 10 lakh Indian IT professionals and a sizable chunk of the country's BPO industry, President Barack Obama has unveiled new proposals to end tax breaks for American companies that shipped jobs overseas to countries like India.
Meeting one of his major election promises, Obama said he will end the tax incentives to those US companies which created jobs overseas in places like Bangalore. Instead, the incentives would now go to those creating jobs inside the US.
"For years, we've talked about ending tax breaks for companies that ship jobs overseas and giving tax breaks to companies that create jobs here in America. That's what our budget will finally do," Obama said yesterday at the White House announcing the international tax policy reform.
"We will stop letting American companies that create jobs overseas take deductions on their expenses when they do not pay any American taxes on their profits," he said.
Obama said his administration will use the savings to give tax cuts to companies that are investing in research and development in the country to jump start job creation, foster innovation, and enhance America's competitiveness.
Source: http://www.ptinews.com/
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