No Tax Holiday for Corporate Job Destoyers

[Donnachaidh]

http://www.commondreams.org/view/2011/10/04

A powerful coalition of U.S.-based global companies is lobbying hard for a "tax holiday" on offshore profits.

Companies like Google, Apple, Pfizer, and General Electric have parked huge amounts of profits — a stash totaling more than $1.4 trillion —in offshore tax havens. They've stowed those funds abroad primarily to avoid having to pay federal taxes on that income.

But now they want to bring their treasure to the United States, albeit at a steep discount on what they owe the IRS. Instead of paying the statutory corporate income tax rate of 35 percent — or even the "effective rate," which for most global companies, is closer to 11 percent — they're urging Congress to let them do this at a tax rate that's a whisker over 5 percent.

They tell Congress they need a "tax holiday" to free up badly needed capital to invest in right here — creating jobs at a time when the U.S. economy is sputtering.

More at the link --

[valerief]

1. They didn't create jobs with their last tax holiday. Why would this be any different? nt

[brooklynite]

2. My wife (a tax lawyer) has raised this point with Democratic Leadership

She's opposed to the concept, but if it does go through, any participating company should be legally ineligible to do it again.

[global1]

3. If The Corps Are Pushing Hard For This Tax Holiday Could It Be They Are Running Out Of Funds.......

to keep things afloat here? They have packed all their money in off shore tax havens and could it be they now need some of it to fund their operations here in the US? They were probably waiting for a tax holiday but now if they don' t get it they might be struggling to make ends meet here. I'm thinking we need to wait them out and force them into a situation where they'll have to bring it in and pay federal tax on it. Just a thought. Knowing how they think they'll probably just lay more people off and let the situation get worse.