President Barack Obama asked Congress to end tax credits and deferrals that “reward” some US companies with overseas subsidiaries that encourage them to create jobs in other countries.
He further said that tax revenues should be given to companies that create new businesses & jobs in the US reveals an ideological view of the relationship between government & the private sector.
First, profit-making companies that are viable in a system of voluntary exchange do not require any assistance from governments. Those that require subsidies are always a drain on other sectors & do not merit support.
Second, it is more likely that high taxes (& excessive regulations) rather than tax breaks “send jobs overseas”. But no individual can claim a property right to a job, per se, & no country can claim that jobs belong in one geographic area or another.
In all events, neither governments nor fellow citizens should have a say in what is done with privately-owned resources. Likewise, neither governments nor fellow citizens should be able to stop a brilliant scientist born or trained in the US from migrating elsewhere.
As such, capital owners must be free to decide where & how they invest.
Forcing US multinationals to pay higher taxes will create an unnecessary competitive disadvantage & may induce some to move offshore altogether or sell out to foreign buyers.
President Obama is either an ideologue or a grasping politicians seeking to take more money away from productive people. Either way, this is no way to lead an economy into a robust recovery!