US president Barack Obama has announced a crackdown on the use of tax loopholes by US multinationals. In a move reminiscent of the long-running foreign profits debate in the UK, the changes proposed would reduce the tax deductions companies receive when they pay tax in countries with lower tax regimes. According to the BBC, the president said he wanted to 'make it easier' for US companies to create jobs at home. In a joint announcement with US Treasury secretary Timothy Geithner, he said: 'The steps I am announcing today will help us deal with some of the more egregious examples of what is wrong with our tax code.' He accused some companies of shirking their responsibilities with regard to tax. The proposals need congressional approval before coming into effect in 2011. The crackdown on deductions will exclude exemptions for expenses on research and development.