Here’s the Republican lie. Because corporations are holding billions of dollars overseas, giving them a tax holiday, where they pay only 5.25% income tax on repatriated profits (a 29.5% saving), will bring more money into the treasury. Corporations will take those repatriated funds and invest them here, where it will create new jobs. It sounds good as lies go, but all it really does is to encourage corporations to invest even more overseas, exporting even more American jobs, and waiting for the next tax holiday. The Republicans know they are lying. Shouldn’t you?
Several Congressional Republicans have been promoting the idea of enacting a tax repatriation holiday, which would allow multinational corporations to bring money that they have stowed offshore back to the U.S. at an extremely low tax rate (instead of the usual 35 percent). House Republicans have introduced legislation that would allow corporations to repatriate money at a 5.25 percent tax rate, while House Budget Committee Chairman Paul Ryan (R-WI) said this week that a repatriation holiday is a “good idea” that he’d like to see “every day.”
This comes even though a similar tax holiday in 2004 failed to deliver its promised economic growth or job creation. And other problems with this sort of corporate tax giveaway is that it encourages corporations to shift assets offshore, in anticipation of the next holiday. After all, why pay taxes at 35 percent if you think Congress will keep giving you a chance to pay 5 percent?
Research from Northwestern University has shown that corporations actually moved more funds offshore after the 2004 repatriation holiday, in anticipation of Congress enacting another holiday sometime, and that “by the end of 2006 the total ‘permanently’ reinvested abroad had exceeded the 2004 peak.”… [emphasis added]
Inserted from <Think Progress>
Look at the graph. See what happened. The lie becomes obvious. There is a better way. Tax corporations that outsource on their full profit from products shipped to the US and services used from the US.
8 Responses to “Republicans Hype Another Corporate Giveaway”
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and remove all tax dispensations given at the state and local levels forcing all corporations to pay taxes not only on the pants they have up and running but on every piece of property they have mothballed or shut down. and make them pay it at the same rate ass i do as a homeowner. 68 mils.
That sounds fair to me. Mark.
They took advantage of this break in 2004 and eliminated even more jobs. How stupid and greedy are these bastards anyway?
Patty, give then an inch and they want the whole freaking banana.
If they’re having a “Corporate Giveaway”, how ’bout giving me EXXON? 😈
I always thought you were an oily type! 😉
so why can’t EVERYONE get a Tax holiday?? In fact their Corporate bosses, whom they had a crooked Judge make their constituents, whom barely pay taxes are the ONLY constituents any of the OCCUPIERS of OUR offices and buildings REPRESENT! I say we the PEOPLE TAX STRIKE, we have NO representation, I mean these occupiers AVOID us like the plaque! They do NOT care about the folks behind their pay checks, health coverage and pensions. Look at their ACTIONS…NOT their lies, vague speeches. Because no-one has done anything, they just keep on keepin’ on! NO CONFIDENCE, in the CESSPOOL these occupiers have turned OUR offices, buildings, our constitution, our laws, our country, our economy ( jobs, tax credits to wrong people, tax evation, illegal fees, outsourcing betrayer corporations) , Oh don’t forget two “developing” countries expenses, along with all of the contractors and pentagon MILKING what little tax revenue we have??
Welcome Kim. 🙂
In principle, I agree with everything you have to say, but in practice, a universal tax holiday will only exacerbate the problem. To solve it, we need to shift the tax burden onto the oppressors.