President Obama on Wednesday announced that he will be assessing his executive authority to respond to growing crises, including the border crisis and the growing trend of U.S. companies reincorporating overseas.
As comprehensive immigration reform has officially failed to pass before August recess, with many feeling increasingly frustrated at Congress’ inaction, Obama asserts that “the American people don’t want me just standing around twiddling my thumbs and waiting for Congress to get something done.”
Congress has the role of passing legislation but, as Obama puts it, “until that happens, I’m going to have to make choices. That’s what I was elected to do.”
Republicans have condemned his “executive overreach” and have even authorized a lawsuit against him. But President Obama is determined to take action himself in the final two years of his presidency.
In regards to U.S. corporations looking to reincorporate in countries with lower tax rates, a process known as “inversion”, the Administration and lawmakers on both sides of the aisle see this as a potential threat to government revenue and the strength of the U.S. economy in the face of globalization.
Ultimately, Obama argues that “The lost revenue to Treasury means it has got to be made up somewhere, and that typically is going to be a bunch of hard-working Americans who either pay through higher taxes themselves or through reduced services.”
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