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A tax holiday on overseas profits - floated by Senators McCain and Hagan as well as supported by...

A tax holiday on overseas profits - floated by Senators McCain and Hagan as well as supported by Silicon Valley tech heavyweights - starts to enter the political debate again after GOP nominee-hopeful Rick Perry slides in a temporary repatriation holiday into his plan. The real sticking point for Dems - and possibly other Repubs - may be the "territorial" tax that Perry proposes, offering multinationals an even larger incentive to expand and invest overseas, according to a left-leaning economist.
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  • gmcleod752
    , contributor
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    Be sure to study this gov report

     

    http://bit.ly/s7fg81

     

    Take note that the last time this was done, the corporations repatriated earnings at about a 5.5% tax rate, but they didn't make the domestic spending promised, and used the money to buy back stock. My guess was the goal was to drive up stock prices for executives to cash in those company stock options.

     

    Here's a quote from this article from the Congressional Research Service. >>

     

    "In short, the studies generally conclude that the reduction in the tax rate on repatriated earnings led to a sharp increase in the level of repatriated earnings, but that the repatriations did not increase
    domestic investment or employment. They further conclude that much of the repatriations were returned to shareholders through stock repurchases."

     

    From what I can see, John Chambers already has a massive stock pile of Millions, how much more does he really need? These guys appear to be addicted to extracting as much as possible for personal gains. How about these CEOs return to the civil support methods of great people like Bill Hewlett and David Packard. Where they make their millions and billions by helping US Citizens have stable jobs.

     

    Back in the mid 80's when I worked at HP, we would take pay cuts during economic down times in order to help the company continue to invest in long term product development. Everybody got the same pay cut. This is a much better approach. It provides job stability and shows that the company is a partner with employees and customers.

     

    These same pay cuts across the board could be applied to government workers, starting with Obama all the way down to all goverment employees. A10% pay cut at the gov level would make a huge difference.
    8 Dec 2011, 01:48 PM Reply Like
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