Obama reforms tax policy, may hit outsourcing

Washington, May 5: Keeping one of the biggest election promises he made, Barack Obama end the tax incentive given to those US companies which create jobs overseas and instead provide these incentives to those creating jobs inside the country.

"We will stop letting American companies that create jobs overseas take deductions on their expenses when they do not pay any American taxes on their profits," Obama said at White House.

Announcing the tax policy reforms, he added that US will use the savings to give tax cuts to companies that are investing in research and development at home in order to create jobs along with promoting innovation and competitiveness of America.

These new tax laws will hit country like India and China as the outsourcing revenues which form a significant part of the economy are bound to be adversely hit.

OneIndia News