Obama Plan Closes Tax Loopholes

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WASHINGTON - Making good on a campaign promise, President Barack Obama announced Monday tax reforms that he says will level the playing field and prevent jobs from being exported.

Despite the move, however, some worry the president is stifling global competition.

For too long President Obama says wealthy Americans and companies have been allowed to walk through holes in the tax code, avoiding paying their fair share and reaping rewards for moving jobs overseas.

"It's a tax code that says you should pay lower taxes if you create a job in Banglaore, India than if you create one in Buffalo, New York," Obama said Monday.

He's now vowing to eliminate those loopholes and improve the government's ability to enforce the law by hiring 800 full time IRS employees devoted to catching businesses and individuals hiding income.

The president is also asking Congress to pass a law requiring overseas banks to disclose how much income their American clients are generating.

Obama says he'll assume banks that don't cooperate are sheltering tax evaders.

Combined, his measures will save $210 billion over the next 10 years, but some economists worry he's leading the U.S. in the wrong direction..

"This is foolishness," said J.D. Foster of the Heritage Foundation. "It's going to hurt jobs. It's going to hurt our companies ability to compete."

The president says he'll use money recovered through tax reform to reward companies that invest in the U.S.

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CBN News
Jennifer Wishon

Jennifer Wishon

CBN News White House Correspondent

Jennifer Wishon is the White House correspondent for CBN News based in the network’s Washington, D.C. Bureau.  Before taking over the White House beat, Jennifer covered Capitol Hill and other national news, from the economy to the 2010 oil spill in the Gulf of Mexico. Follow Jennifer on Twitter @JenniferWishon and "like" her at Facebook.com/JennWishon.