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U.S. companies continued to hoard their foreign profits as they await a tax holiday that may not...
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Sunday, March 4, 2012, 5:08 AM ETU.S. companies continued to hoard their foreign profits as they await a tax holiday that may not come or a change in the law. The untaxed overseas income of 70 U.S. corporation climbed by $187B over the past year, a Bloomberg analysis finds, with GE and Pfizer (PFE) leading the way. In total, the U.S. firms hold $1.2T abroad.
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Let them bring back the cash at current rates.
They can then get a rebate for that money at the following ratio:
Every percentage increase in American employee hiring will be met with a same percentage of foreign income tax rebate.
For example:
If GE currently has 100,000 American workers and brings back $50 billion from overseas they would pay the current tax.
After, say, hiring 5,000 AMERICAN workers in 2013 they would get a rebate on those foreign taxes equal to 5% of what they paid when they brought the money back home. After 95,000 more American hires they would have all of the cash back, tax-free.
This what they call "win-win"!
If it is cheaper to pay a foreigner then fine but no tax break.
If they want the tax break then they must hire Americans.
If they want to hire foreigners when they could hire Americans AND expect Americans to hand them tax breaks for the privilege then they can shove it.
They can pick up at any time and HQ in another country and live with that country's laws, taxes and regulations.