Great deal for corporations! The proposed legislation works to entice the return of overseas profits. But if the money comes home, what will corporations do with the windfall revenues that they were unable to do before?
Think carefully: labor costs (and their global differences!) will still be the same. Sales are not enhanced by returned profits–and neither are domestic investments, which can still be made from domestic revenues. Costs are not cut by returned profits. The incoming revenues might be used for dividends, but it’s highly unlikely. The one likely benefit, albeit unmentioned, is to increase the salaries and bonuses of bosses and managers!
CEOs scream about US corporate taxes, but no matter their home office location, they will not abandon US markets. They simply want to abandon US tax obligations; they frame the argument, as the article does, as an issue of fair share.
Is it “fair share” when companies that make the most seek in the US by comparison to other countries seek to pay the least? While they seek a premium on their stock price, they see no reason to fund the structures of location, labor, education, infrastructure, work ethic, government and law and product demand that are inextricably connected to their success.
So bring the money home and bloat the bottom line. May then all will see “fair share” looks and acts, more and more, like “greed” adding returns to the rich–whose real argument about US taxes is something is better than nothing!
In Old England, the returns of the proposed plan, a fleecing similar to the legerdemain of rogue bands of English pickpockets was called “bunce.” Corporations are simply after the bunce.
How to Stop Turning U.S. Corporations Into Tax Exiles – The New York Times http://nyti.ms/1V9Aun9