Sept. 30 Bloomberg News says an “army” of lobbyists is going through Congress to convince it to pass a “tax holiday” that would encourage corporations to bring $1 trillion back to the U.S. American companies have “$1.375 trillion in profits overseas on which they have paid no federal income tax”
The current tax law (joke?) says they pay nothing until they bring the money back into the US. Then they pay 35% minus a credit for what they pay to foreign countries. So they don’t bring the money back and blackmail the country till they get a “holiday”, a deal where they bring the money back and pay a very small tax rate. This happened last in 2004.
The corporate lobbyists dazzle Congress with tales of how much money will come back to the US which will be used to make oodles of jobs. What they don’t say is that in 2004 the money came home, went into a few pockets and was mostly used by companies to buy back their stock to make prices rise.
Besides cash isn’t the problem. Companies already have over $2 trillion in cash that they could use to hire people.
It’s a scam.
More fat gifts to corporations won’t create jobs. The government needs to hire directly millions of workers permanently in , Green Jobs industries.
And since the big money guys reminded us, we’ve got to figure out how to tax that money they sweat out of workers overseas whether they bring it home or not.