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Head of P&G blasts Obama tax proposal

March 31, 2009
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The chairman of the world''s largest consumer products maker says a provision in President Barack Obama''s budget proposal regarding income made overseas would cost American jobs and give foreign businesses an unfair advantage. The Associated Press reports that A.G. Lafley, chief executive officer of the Procter & Gamble Co., said a proposal to limit or end deferred payment of taxes on foreign income would lead to job cuts and higher prices for American consumers and would cost companies billions. U.S. companies now are allowed to defer payment of taxes on foreign income until those funds are brought back into the country. Requiring immediate payment of taxes would give an edge to foreign competitors, such as L''Oreal, Unilever, Nestle and Kao, Lafley said. In a guest column in Sunday''s editions of The Cincinnati Enquirer, Lafley decried "the unintended consequences of a proposal that may sound good on the surface but could undermine American companies, workers and consumers." Foreign-based competitors would be able to reinvest more, expand faster and sell their products at lower prices than U.S. companies, Lafley wrote. The company''s products include 23 with at least $1 billion in annual sales, such as Tide detergent, Pampers diapers and Gillette shavers. Lafley has used Enquirer guest columns before to take P&G''s views to the public. Last year, he wrote that customers and suppliers were feeling pinched by the credit crunch, and he urged the public to help persuade Congress to pass a bailout package.
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