In reaction to President Obama’s proposed plan on changing the income tax deferment rules for corporates, Steve Ballmer the Microsoft CEO warned that Microsoft would move a chunk of it’s operations overseas.
Bloomberg News reported that Ballmer remarked that he would move the jobs overseas if the purported international tax reforms are passed stressing on the fact that the current US taxes make hiring workforce in U.S. expensive.
President Obama believes that under the existing tax law, MNC’s “ship jobs overseas” as companies can instantly deduct costs on foreign investment from their taxes in the U.S. and putt off paying their taxes on profits earned overseas until it gets repatriated back to the country.
