A.G. Lafley, the Chairman and Chief Executive Officer of one of the world's biggest consumer goods companies, Procter & Gamble (NYSE:PG), said that a provision regarding income made overseas in President Barack Obama's recently unveiled budget proposal was extremely ill-advised and would have the "opposite effect" of what the President intends. The proposal was made to limit or end deferred payments of taxes on foreign income, which US corporations can currently do until that capital is redirected back to the country. However, while President Obama intends to promote job growth by improving the nation's infrastructure and driving innovation, the provision will have an adverse effect, basically leading to squeezed corporate margins and causing further job reductions and higher prices for the American consumer. The provision, according to Lafley, would give a competitive edge to businesses based overseas. In a statement made in Sunday's The Cincinnati Enquirer Lafley argues that, "the unintended consequences of a proposal that may sound good on the surface but could undermine American companies, workers and consumers."

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