Law-Forums.org

[lathrop]

WASHINGTON -- The 15 companies that benefited the most from a 2004 tax break for the return of their overseas profits cut more than 20,000 net jobs and decreased the pace of their research spending, according to report from the Democratic staff of the Senate Permanent Subcommittee on Investigations released Monday night. GE who paid negative taxes only paid 5% on their billions brought home and they immediately fired 10,000 workers. Bring good things to life? My asp.

The report warned against repeating the tax break, calling the 2004 effort "a failed tax policy" that cost the U.S. Treasury $3.3 billion in estimated lost revenues over 10 years and led to U.S. companies directing more funds offshore. U.S.-based multinationals often defer bringing back profits earned abroad to avoid paying U.S. taxes on them.

The 15 companies that repatriated the most after the 2004 tax break on the return of overseas profits later cut a net 20,931 jobs between 2004 and 2007 and slightly decreased the pace of their spending on research and development, found the report surveying 19 companies' activity.

When Congress passed the repatriation tax holiday in 2004, the legislation specified that the funds should be earmarked for activities like hiring workers or conducting research and prohibited using the money for executive compensation or buying back stock. Companies that brought back profits earned abroad saw them taxed at roughly 5%, instead of the top 35% corporate tax rate.

[kendrix]

Pretty much, but are you sure it only cost $3.3 billion in estimated lost revenues over 10 years? Most corporate and bank scams pay a lot more these days.

[denys]

According to a study referenced by Monty Python in "the Meaning of Life people are not wearing enough hats! It's every bit as relevant as the "study" YOU referenced!

[dallen47]

It was basically licking the boots of people flaunting the law and ripping off the tax payer.
They should have been investigated and thrown in jail if they didn't comply.

But they have their hands in too many politicians pockets for that - ain't gonna happen.
Sadly Marx had a few points to make.