Earlier this week, Obama outlined his plans for a new tax code which would cut down on the loopholes large multinational companies use to avoid paying taxes.

As part of his plans to overhaul the U.S. tax code, President Obama promised yesterday to crack down on such business strategies that can send jobs and U.S. taxes overseas...

..."It's a tax code that says you should pay lower taxes if you create a job in Bangalore, India, than if you create one in Buffalo, N.Y.," Obama said.

Big business was sweating just how far Obama was going to go with his new tax code. But all the sweating was in vain...like most of Obama's proposals thus far, it doesn't really go that far at all.

The president did not propose eliminating the current law that allows U.S. companies to defer taxes indefinitely on overseas income, which some industry leaders had feared.

This President, like pretty much every other President, was elected with the help of big business. He isn't going to turn around and screw them.

And keep in mind that closing these loopholes isn't exactly a new idea.

Democrats have been fighting -- and losing -- this battle since John F. Kennedy made a similar proposal in 1961.

Obama has cited a study from 2004 that found large multinational companies paid $16 billion in taxes on $700 billion of foreign earnings.

Yep. Their tax rate is about 2%.

Obama said his plan would raise $210 billion over the next 10 years. He also stated that he would make permanent a current tax credit for companies that do research and experimentation in the United States which is set to expire later this year.

Obama's goal is to curb tax breaks for U.S. companies that operate in other countries with the (hopeful) end result of more American companies supplying more American jobs.

Companies may still pay taxes to foreign countries where they do business, but those rates tend to be lower than the U.S. tax rate. Through "deferral," big tech companies have avoided paying U.S. taxes on billions in overseas revenue...

...While not eliminating deferral, Obama would change the law that lets companies take an immediate deduction on their U.S. income tax for business expenses tied to overseas operations, such as interest on a loan to build a foreign factory. According to a White House fact sheet, the proposal would raise $60 billion over nine years by requiring companies to defer those deductions until they pay U.S. taxes on the income from those operations.

Making American companies pay American taxes? Somewhere a Conservative is claiming this is un-American.

While I wish Obama's plan went further (eliminating deferrals completely would have been nice) I do hope his new plans can come to fruition and hopefully lead to more jobs in America and help bring the economy back in line.

Not holding my breath, mind you, I just hope it works.