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…suckers with a short memory, forgetting they lied last time about the very same thing.

 

Companies Push for Tax Break on Foreign Cash

 

Under the proposal, known as a repatriation holiday, the federal income tax owed on such profits returned to the United States would fall to 5.25 percent for one year, from 35 percent. In the short term, the measure could generate tens of billions in tax revenues as companies transfer money that would otherwise remain abroad, and it could help ease the huge budget deficit.

 

Corporations and their lobbyists say the tax break could resuscitate the gasping recovery by inducing multinational corporations to inject $1 trillion or more into the economy, and they promoted the proposal as “the next stimulus” at a conference last Wednesday inWashington.

 

For every billion dollars that we invest, that creates 15,000 to 20,000 jobs either directly or indirectly,”JimRogers, the chief of Duke Energy, said at the conference.Duke has $1.3 billion in profits overseas.

 

But that’s not how it worked last time. Congress and the Bush administration offered companies a similar tax incentive, in 2005, in hopes of spurring domestic hiring and investment, and 800 took advantage.

 

Though the tax break lured them into bringing $312 billion back to the United States, 92 percent of that money was returned to shareholders in the form of dividends and stock buybacks, according to a study by the nonpartisan National Bureau of Economic Research.

 

This money comes from overseas operations and in some cases accounting maneuvers that shift domestic profits to low-tax countries. The study concluded that the program “did not increase domestic investment, employment or research and development.”

 

Indeed, 60 percent of the benefits went to just 15 of the largest United Statesmultinational companies — many of which laid off domestic workers, closed plants and shifted even more of their profits and resources abroad in hopes of cashing in on the next repatriation holiday.

 

Whole story:

http://www.nytimes.com/2011/06/20/business/20tax.html?nl=todaysheadlines&emc=tha2

 

Graphic:

http://www.nytimes.com/imagepa...ic.html?ref=business

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"Though the tax break lured them into bringing $312 billion back to the United States, 92 percent of that money was returned to shareholders in the form of dividends and stock buybacks,..."

 

The corporations paid a 5.25 percent rate to repatriate their profits.  Then, stockholders paid paid from 15 to 35 percent on dividends paid. And, similar tax on capital gains from stock buy backs.

 

Uncle Sam got tax revenue from one pocket, rather than the other.  Otherwise, if the profits weren't repatriated, he would have gotten zilch, nada, nunca!

 

Propie, back to the old logic patch with you!  Come back with a better one, next time.

Originally Posted by Mr.Dittohead:

We need to end corporate income tax and institute an excise tax on everything.  There is no mystery or avoidance of excise taxes.

I agree with you on this, essentially.  An excise tax on everything would go far in replacing the individual income tax, as well.  However, it should be coupled with a duty on high priced items imported by individuals, as well,  No use taxing small amounts as the cost of collection would exceed the income,  And, slow down the lines passing through customs.

 

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