Originally Posted by malax
They aren't asking for a hand-out, they are just stating facts: the tax code currently provides disincentives for them to bring that money back to the US. If the disincentives are removed (temporarily), they will behave rationally and take advantage of it by bring it "ashore" and paying US taxes that they would otherwise avoid.
No, the point of the tax holiday is that they bring the money "ashore" and don't pay taxes on it.
But as the report stated, the last time this happened it did nothing for unemployment. I agree with those who think this is corporate greed. One of the reasons the federal budget is in such bad shape is because corporations are not paying their fair share in taxes. That's why individual tax burdens are so high (although taxes on the rich, despite the hype, are far lower than they were under Nixon or Reagan).
In the third quarter of 2010, American corporations earned profits at an annual rate of $1.659 trillion - the highest total since the government began keeping track more than 60 years ago. But are they hiring? No.
Going back a decade, according to the GAO, 6 in 10 American corporations reported no tax liability for the five years from 1996 to 2000 and 7.1 in 10 foreign corporations doing business in the U.S. reported no tax liability.
In the late 1990s, almost 2/3 of American corporations paid little or no taxes. 90% paid less than 5%. Corporate taxes were 7.5% of total tax receipts. During WWII, they were 40%.
So all this screaming by corporations that taxes are too high is total B.S. They put the burden of taxes on individuals and they're not keeping people employed. They have no shame.
I'd be in favor of the tax holiday if corporations could prove that at least 75% of the savings was going into job creation. Otherwise, it's just a scam to benefit executives with bonuses and the largest stock holders. I own Apple stock and even if Apple paid this money as a dividend (which they're unlikely to do anyway), I'd be opposed to the tax holiday.