Citi, BofA Cut Workers After US Tax Holiday: Report

[marmar]

Published on Tuesday, October 4, 2011 by Reuters

Citi, BofA Cut Workers After US Tax Holiday-Report
Report singles out 10 companies for cutting jobs


Ten major U.S. corporations, including big banks Citigroup Inc and Bank of America Corp, laid off workers after enjoying a tax holiday in 2004-2005 that had been billed as a form of economic stimulus, said a report released on Tuesday.

With large multinational companies today pressing Congress for another tax holiday, the Institute for Policy Studies reported that the last one did not fulfill its rosy promises for hundreds of thousands of U.S. workers.

Fifty-eight corporations that accounted for 70 percent of overseas profits repatriated under the 2004-2005 tax break collectively saved $64 billion in taxes, then cut 600,000 jobs through layoffs, the report said.

It is the latest in a series of warring studies on whether U.S. multinationals should be allowed, for the second time, to bring home hundreds of billions of dollars in overseas profits at a bargain-basement tax rate. .........(more)

The complete piece is at: http://www.commondreams.org/headline/2011/10/04-4

[daggahead]

1. M*ther F*ckers.

I try to avoid using services from BOA & Citi ...

[OhioChick]

2. "saved $64 billion in taxes, then cut 600,000 jobs through layoffs"

That's fucked up.

[BlueCaliDem]

3. You mean to tell me tax cuts *aren't* helping "job creators" create jobs??

Oh my. :sarcasm:

THIS is what America's corporate media should be reporting when the corporate lackeys, the GOP congressasshats, mewl about tax cuts for the "job creators (in China, India, Japan, Korea, etc)" to help create jobs HERE! This should shut them up, el pronto! But no. Corporate Media (America's corporate propaganda machine otherwise known as America's news outlets)reports on how dismal President Obama's numbers are, and how wonderful "everyone" would feel should El Gordo Christie want to go for the presidency.

[DCKit]

4. At this point, I think they simply expect us all to write checks.

It's a hostage situation, and they're not dealing in good faith.

[TBF]

5. Banks should be nationalized along with oil companies and health care. nt

[unblock]

6. of all the lame-brained ideas to paint as "job creators", this one takes the cake.

mostly, a tax holiday lets big companies pocket more profit.

period.

then it lets them make more money with CAPITAL rather than relying on LABOR.
so if anything, it's usually more likely to lead to fewer jobs than more jobs.

the ONLY time when it is likely to lead to MORE rather than FEWER jobs is when a company wants to expand in the u.s. but is cash-starved here, with plenty of profits available overseas for repatriation.

but in that case, bank would be happy to find a way to effectively lend it money in the u.s., using the overseas money as collateral. this can't be done directly, but it can be done indirectly. alternatively, if the company wanted to enough, it would bite the bullet and pay the taxes.

you need a HIGHLY specific set of circumstances for a tax holiday of this sort to actually lead to ANY new jobs at all.