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President Obama Chastises 'Corporate Deserters' During L.A. College Visit

Christian Brown |
July 24, 2014 | 6:03 p.m. PDT

Contributor

On the last leg of his two-day visit to Southern California, President Barack Obama called on Congress to adopt "economic patriotism" by eliminating overseas tax loopholes for U.S. corporations.

SEE ALSO: Obama Visits Los Angeles On Fundraising Tour

"You don't get to pick and choose the tax rate you pay," Obama said during an address at Los Angeles Trade-Technical College. "They shouldn't be able to do this either."

The practice, known as "inversions," allows U.S. corporations to dodge millions of dollars in taxes by merging with smaller foreign companies. Obama said the corporations relocate nearly every aspect of the business outside of the country, leaving only the headquarters in the U.S.

Ahead of midterm elections, Democrats are pouncing on the evasive tax rule, calling on Republicans to reform the corporate tax code.

"Some people are calling these companies corporate deserters," Obama said. "They're cherry-picking the rules. It adds to the deficit and sticks you with the tab. Let's stop rewarding these companies who ship jobs overseas and reward the companies who pay their fair share."

While Obama acknowledged the "stubborn status quo" in American politics, the Democratic president's visit to Trade Tech may signal a recommitment to job-driven skills training.

On Tuesday, Obama signed the Workforce, Innovation and Opportunity Act, a major overhaul to federal job training programs. White House officials say the law ensures federal agencies use $17 billion in training funds more efficiently.

The bipartisan law coincided with a 180-day job training report from Vice President Joe Biden, who suggests new strategies to retrain the American workforce.

SEE ALSO: President Obama Signs LGBT Workplace Protections

Located just south of downtown, Trade Tech is one of the premier two-year colleges retraining workers for careers in healthcare, engineering, fashion, culinary science, and automotive mechanics. With more than 15,000 students, Trade Tech was awarded a Department of Labor skills training grant to further the education of students entering high-growth sectors.

"I know cynicism is fashionable, but I believe in optimism. I believe in hope," Obama said, drawing applause from the crowd. "There are more jobs open today than in 2007...job training helps Americans find a path back to the middle class."

Arturo Gomez says he's one of those Americans.

The 19-year-old student, who is studying business management at Trade Tech, said he was encouraged by the president's consistency on inner-city job growth.

"Hearing him was a breath of fresh air," he said. "He's only got two more years left so he's building on what the next president has to do. The economy is going to take time, it's not going to happen overnight."

California state Senator Holly Mitchell (D-26), who represents Culver City and several L.A. communities, praised the president's remarks on economic patriotism as the direction the country should embrace.

"He was fair and accurate about what he's achieved to this point," said Mitchell, who believes the work to increase job training has only begun. "Adequate funding for career opportunities is critical for families in need to be successful." 

 

Reach contributing writer Christian Brown here.



 

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