Moving Job Overseas in Connection With Obama Tax Plan

As previously hinted, the process of Companies threatening to move jobs overseas in response to the Obama International Tax Reform Proposals has started. The newest CEO to speak out about the International Tax Reform is Microsoft.

Bloomberg reports that if the reform occurs, Microsoft will move jobs overseas to avoid excess taxation.

Obama had to know this was a possibility, and that many CEO's and lobbying groups will continue to threaten responses to any tax proposal that resembles Obama's earlier presentation.

Unfortunately, I believe that companies will go further than merely threatening to reduce jobs, they will actually move entire corporations to International Tax Havens, such as; Ireland, Bermuda, and other similiar low tax jurisdictions.

On the other hand, Obama is an intelligent negotiator and may be using the tax proposal to soften the blow of other less strignent taxes, in order to increase his leverage in future discussions.