American firms have launched a campaign against the new law that ends tax incentives to those firms which create jobs overseas.
A Washington-based advocacy group comprising of American tech-companies, the Technology CEO Council on Tuesday, Jun 9 released a report which states that the tax reforms that were recommended by the president would result in job loss of about 2.2 mn Americans.
The report which was authored by Robert J Shapiro, a former Clinton administration economic official, and Aparna Mathur, a Research Fellow at the American Enterprise Institute suggests that the reform will have far reaching effects besides affecting jobs.
The 'tax breaks' could cause investments in the US in plant, equipment and property fall by as much as 84.2 bn dollars. It would fail to generate large tax revenues, as huge job losses, wage cuts and lower investments would reduce tax revenues.
Barack Obama, on May 5 had said that the tax incentives that were given to American firms which create jobs overseas would be cut and provided to those creating jobs inside the country.