Obama Tax Proposal
I have analyzed the situation well, and even if I was to assume, Sen Obama formalized the proposal by early June, 2009, it would take at least the end of 2011 for this plan to come through. Until then, this Obama Tax plan would have to follow the dubious circle of Congress and the Senate.
Sounds like a politician speaking, but the truth is for this one to come through, Sen Obama has to work his way (or rather charm) through multinationals and business conglomerates, who have a heavy presence in the Capitol Hill. Maybe, with some arm-twisting, Sen Obama could pull it off, but the key is – How much time will it take?
This statement has been grossly misunderstood by a lot of people. In fact, for now, this is just a proposal made to a country that is deeply submerged in recession. By the looks of it, the Obama Tax policy seems to be a mere appeal to people that the government is in control.
The rhetoric draws comparisons to Bangalore, an Indian city, famous for the presence of a lot of BPO and ITES companies. These companies work on the outsourcing model. Sen Obama has proposed that taxes would be charged to companies who show profits made out of their overseas entities.
Nevertheless, this tax proposal change is applicable only for companies who have their captive centers in operation in developing countries like India. The third party BPO Vendors who outsource work to their Indian counterparts, seem to be largely unaffected by this suggestion.