The tax break that didn’t create jobs, and now corporations want another one
source: http://www.scholarsandrogues.com/2011/09/01/the-tax-break-that-didnt-create-jobs-and-now-cor...
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- hoosierdaddy
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Imagine corporations telling you they want to create American jobs in exchange for a tax break. Thanks to a compliant Congress, they get a cheap rate on billions of dollars of profits — and cut thousands of American jobs instead. (Pfizer and Hewlett-Packard come to mind.)
After the turn of the century, hundreds of multinationals, such as Pfizer and H-P, nominally headquartered in the United States had a problem. They had about $300 billion in profits parked overseas. They wanted to bring that money home — a process artfully called repatriation of funds.
Their opponent was the U.S. tax code: To repatriate profits, the code said they’d have to pay 35 cents on every dollar brought home. So they sweet-talked (that’s called lobbying) their friends in Congress (their hired elected minions) to fix the problem. Their congressional chums were glad to help out by lowering the tax bite to 5 cents for every dollar brought home. The lobbying effort was a good investment: For every buck the corporations spent, they got $220 back.
After the turn of the century, hundreds of multinationals, such as Pfizer and H-P, nominally headquartered in the United States had a problem. They had about $300 billion in profits parked overseas. They wanted to bring that money home — a process artfully called repatriation of funds.
Their opponent was the U.S. tax code: To repatriate profits, the code said they’d have to pay 35 cents on every dollar brought home. So they sweet-talked (that’s called lobbying) their friends in Congress (their hired elected minions) to fix the problem. Their congressional chums were glad to help out by lowering the tax bite to 5 cents for every dollar brought home. The lobbying effort was a good investment: For every buck the corporations spent, they got $220 back.
