Quote:
Originally Posted by 4444
well, yes and no - you're right, these companies have so much money overseas... and they use this money overseas (its not like they're just sitting on it getting a 1.25% return in a GIC/T-bill) - but what we need is to have these funds redeployed at home, in the good old US of A.
My personal feelings are that the next step of the economic recovery, and what is needed to push start the US recovery is to have the 35% tax on these funds decreased - there is talk of a 5.xx% tax for a short while in relief of this, i would back this until the cows come home - this will be nothing but positive for job creation, US stability, etc.
everyone wants, an will be better off with this money back home - so while there is a potential for 35% tax on these funds (which will never happen, as these companies will never repatriate at 35%, and given these companies will last forever, effectively - that 35% becomes 0% in reality) or 5.xx% today - that'll still be trillions of dollars of tax revenues for the fed, and millions of jobs created at home, invested in what we're good at - innovation, technological advancements (maybe in the world of natural gas, and other 'home grown' energy sources, housing price stability, increased demand, etc, etc.)
President Obama needs to call me to talk about this!
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I would disagree with you here.
I'm an opponent on further tax cuts for corporations cause it just doesn't seem to work for me. While it might provide short term stocks to increase because the financial statements will look better, it will hurt the overall economy in the long run.
Since the 70's tax cuts the US has never been the same. In the middle of the last century corporate and income taxes for the rich were at super high levels. Then the government decreased it further and further until now they are now at extremely low levels compared to that period of time.
I won't go into a lengthy discussion but to summarize why I don't think it won't work:
- Tax cuts don't trickle down. Tax rates for the rich and large corporation has been decreasing and decreasing since as long as you and I have been born. It hasn't trickled down.
- The Bush administration had tax cuts in the early 2000s that were worth almost $3 Trillion dollars, that could have been used on infrastructure, education, innovation. anything. $3 Trillion is a lot of money.
- Tax cuts seems to help only the rich, and since these cuts, the gap between the rich and the poor has been increasing. The richest 20% of population owns 85% of the wealth. I'm no socialist, but even that's grossly out of line. The middle class, one of the driving engines of the economy, is getting poorer.
- Jobs have not been created from these tax cuts and actually, most of the savings on the bottom line from corporations are used to invest Overseas instead of in North America.