Monday, June 20, 2011
Having fooled us once before
Corporations with overseas profits look to do it again in order to repatriate their profits. The last time they received a tax break to do so, they all solemnly swore they would reinvest in US facilities and hire more workers. Which they all promptly failed to do.
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.Sometimes it is hard to tell the difference between a US corporation and an enemy combatant. And we might all be better served if they were both treated the same way.
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 States multinational 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.
Subscribe to Posts [Atom]
Post a Comment