President Obama calls for an end to an ''unpatriotic tax loophole'' that allows U.S. companies to avoid federal taxes by shifting their tax domiciles overseas. Rough Cut (no reporter narration).
ROUGH CUT (NO REPORTER NARRATION) STORY: President Obama on Saturday (July 26) again called for an end to what he described as an "unpatriotic tax loophole" that allows U.S. companies to evade taxes by establishing their domicile overseas while still operating largely in the U.S. "They're keeping most of their business inside the United States, but they're basically renouncing their citizenship and declaring that they're based somewhere else, just to avoid paying their fair share," Obama said during his weekly address to the American public. The practice, known as "inversions", occurs when a U.S. company acquires or sets up a foreign company, then moves its U.S. tax domicile to the foreign company and its lower-tax home country. "Stopping companies from renouncing their citizenship just to get out of paying their fair share of taxes is something that cannot wait. That's why, in my budget earlier this year, I proposed closing this unpatriotic tax loophole for good," Obama said. Obama addressed the same issue on Thursday (July 24) in remarks to a crowd at a Los Angeles training college and called on Congress to pass a bill to curb the practice. Obama has thrown his weight behind Democratic bills that address the practice, calling for a rule change that would deem any company with half of its business in the United States to be U.S.-domiciled.