Obama's New Protectionism: Taxing Multinationals' Overseas Activities

Who would have thought that President Obama would become the most protectionist US President since Herbert Hoover? Nevermind the mounting US protectionism which is visible through the erection of trade barriers against China. Nevermind the regulatory barriers to US inbound M&A deals in strategic sectors. The real innovation of Obama in terms of creating a new form of protectionism is that he is proposing to increase US jobs by taxing the overseas activities of US multinationals. We examine the proposed legislation and its impact on outbound US M&A. We then reflect upon the broader macroeconomic implications of the

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