Apple, Google, Microsoft and others try to bypass their own taxes.

[BigBeast]

Please read this post by the New York Times.
http://www.nytimes.com/2011/06/20/business/20tax.html?_r=1&nl=todaysheadlines&emc=tha2
It describes how Apple, Google, Microsoft, and other major multinational and multibillion dollar companies all have BILLIONS of dollars in cash overseas that they are waiting to bring back home. Normally, they would have to pay 35% tax on their profits, however, they are trying to influence Congress into allowing them a tax cut to 5.25%!! Their reasoning is that it will create an influx in job and domestic spending as well as being used for R&D. The Bush administration allowed companies to do this in 2005 with the idea that the companies would increase job hiring and all the other reasons listed prior. That was not the case however. Numerous reports have shown that in most cases, companies that took advantage of this tax break aka "repatriation," continued to increase layoffs (some by the thousands), decreased domestic spending, and moved jobs overseas. Please read this article and familiarize yourself and those you know with this issue. Let's not have these companies, even the ones we sincerely support, such as Apple, get away with this. Fool me once, shame on you, fool me twice, shame on me.

 

[chaosbunny]

Tax is not for big corporations, it is for people like you and me. Practices like these have been common in the past decades.

Corporations bribe politicians, either directly or through sponsorship of election campaigns.

 

[rdowns]

I have no problem with our government allowing lower rates for corporations to bring money back to the US. I would put requirements on corporations on hiring or similar and restrictions that the government can only use these taxes for debt/deficit reduction.

 

[BigBeast]

I have no problem with our government allowing lower rates for corporations to bring money back to the US. I would put requirements on corporations on hiring or similar and restrictions that the government can only use these taxes for debt/deficit reduction.

Unfortunately, there are too many loopholes that companies use to take advantage, resulting in no net increase in hiring or spending.

There is an estimated 1.5 trillion dollars overseas waiting to come home. At 35% the amount due would be 525 billion dollars- at 5.25%, only 79 billion. TRUST ME- the amount received by actually taxing the set amount @ 35% would FAR outweigh the possible job hirings and spending the companies would possibly create.

Don't let these companies pad their pockets more- creating bonuses and net increase in profits- all while they continue to cuts jobs and decrease spending!

 

[Rodimus Prime]

I have no problem with our government allowing lower rates for corporations to bring money back to the US. I would put requirements on corporations on hiring or similar and restrictions that the government can only use these taxes for debt/deficit reduction.

They need heavy handed ones.
Last time they did this on "promise" of making more jobs. 92% of the money went to stock holders and CEO.
Companies that promised to "create" more jobs in the US REDUCED their work force in the US and ship those jobs over seas in hopes of being able to do the same thing again.
It is one of those fool me once shame on you. Fool me twice shame on me.

Their needs to be some very heavy handed rules on it and the money must be track.
The real reason they want to bring it back into the US is because it does not get track as much and lets them invest it elsewhere over seas (and then claim them as losses on their tax returns)

 

[Mousse]

I'm guessing this thread is heading to PRSI...

Corporate American, to paraphrase Virgil 'The Turk' Sollozzo, keeps all those politicians in their pockets, like so many nickels and dimes.

Don't expect any of this to change.

Replace the global elite bankers with Corporate America and it's the same thing.

 

[iJohnHenry]

It is one of those fool me once shame on you. Fool me twice shame on me.

Have they never heard of a performance bond, or hold-backs???

 

[kdarling]

"Congress and the Bush administration offered companies a similar tax incentive, in 2005, in hopes of spurring domestic hiring and investment, and 800 took advantage.

Though the tax break lured them into bringing $312 billion back to the United States, 92 percent of that money was returned to shareholders in the form of dividends and stock buybacks (...).

Indeed, 60 percent of the benefits went to just 15 of the largest United States multinational companies — many of which laid off domestic workers, closed plants and shifted even more of their profits and resources abroad in hopes of cashing in on the next repatriation holiday. "

Fool me once, shame on you. Fool me twice...