Tech firms oppose Obama's tax plan

High-tech firms, including Microsoft, IBM and Hewlett-Packard, are opposing an Obama administration plan to eliminate tax deferrals on corporate revenue derived from overseas operations.

"This is the linchpin in American competitiveness," Phil Bond, president of TechAmerica, the nation's largest high-technology advocacy group, said at a news conference this week reported by Nextgov.com. "The tax provisions around overseas income are critical to allowing our companies to go overseas to compete and succeed."

Although there is no specific legislation yet, it is expected that lobbying on this hot issue will intensify this fall against efforts to change the tax laws.

The deferral is part of a broader effort by the Obama administration to limit outsourcing to countries such as China and India. However TechAmerica, which represents 1,500 companies, and other high-tech groups, say the deferral allows U.S. companies to stay competitive in foreign markets.

"We think it ends up having the opposite effect of what was intended," Bond told Nextgov.com.

For more on the tax battle:
- check out this Nextgov.com article

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