Thursday October 23, 2014

Kraft hits out at corporate profits tax

Kraft Foods CEO Irene Rosenfeld spoke out against U.S. corporate tax policy, saying it is deterring companies from hiring workers and restricting investments.

The Financial Times quotes Kraft Foods CEO Irene Rosenfeld, who says the U.S. policy of taxing corporate profits earned overseas is deterring companies from hiring workers and holding back business investment. Rosenfeld stated, “Right now, we are taxed twice on income that we earn outside the United States, and that has an impact on how we think about our investment decisions.” She went on state that a revisiting of the corporate tax structure is the most important thing the next White House administration can do to create jobs. GOP presidential candidate Mitt Romney has called for a “territorial” tax system in which income is only taxed where it is earned. The Times notes that President Obama counters that such a move “would encourage companies to hold money in foreign tax havens and would create nearly 1 million jobs in other countries.”

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