Tuesday, May 5, 2009

An Obama Strategic Blunt Instrument?

Former Labor Secretary under Bill Clinton, Robert Reich, lists a number of reasons why Obama is going after corporate tax havens. One possibility Reich suspects is that it will be used as a strategic blunt instrument to muscle through Obama's healthcare plan.

Here's Reich:

The President needs the cooperation of many big corporations if he's going to get universal health insurance enacted this year. Many of these companies would benefit from lower health costs but they're reluctant to take on Big Pharma, big health insurance companies, and major health providers, all of whom are dead set against a provision in the emerging health insurance proposal that would allow the public to opt for a government health plan. How does it help for him to take on corporate tax havens? Because the President needs as many bargaining chips with the rest of corporate America as possible. The proposed crackdown on foreign tax avoidance is one such chip. He might be willing to take it off the table if big corporations lend him active support on health insurance.

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