Obama presidency could encourage offshore company formation

11/11/2008

American entrepreneurs may soon be considering offshore company formation when President-Elect Barack Obama takes over the reins in January next year.

This is because among the few people not celebrating Mr. Obama's recent election victory, are American small businesses that earn in excess of $250,000 per year. The National Federation of Independent Business, for example, soundly backed the Republican Party.

The Democrats' proposal to raise income tax rates for individuals making more than $200,000 (or $250,000 per family), elicited a significant protest from sole traders and small businesses. This is largely because earnings at most small businesses are passed through to their owners for tax purposes and are taxed at individual income tax rates.

The Republican Party even took 'Joe the Plumber' on the campaign trail with them to tell America - and the World - how much worse off small businesses in America would be under President Obama.

Will there be a sharp increase in the volumes of American entrepreneurs making enquiries with offshore company formation agents in the coming weeks and months? It's entirely possible.