2) I've heard at least one proposal that sounds fair. Allow corporations to bring the money back to the US tax-free, so long as the money is spent on hiring American workers, buying American goods, etc. The government needs revenue (doesn't it always), but more than anything right now the US needs jobs and sales!
I'd agree with this wholeheartedly.
The reality is that even if the money were to be repatriated tax free, the government would see revenue as a result--in addition to the political benefits of new jobs.
Some companies don't really have anything to invest in in the US. Apple does, that money could be spent on a lot of things, even though manufacturing is unlikely. We would most likely see a faster rollout of new retail stores in the US. Apple's sales numbers prove that consumers are hungry for their products, and while their retail operation is very profitable, it doesn't have a huge footprint. It doesn't take a rocket scientist to figure out that as Apple's retail footprint expands, so do the company's sales.
There are dozens of companies going out of business right now with large amounts of real estate available for retail stores. Who's to say Apple wouldn't snatch one up and renovate existing spaces? The dilemma for Apple (or any company considering such a move) is that the money they would use for that kind of purchase would need to be repatriated and taxed at 35%, making the purchase price significantly higher than it actually is.
I've read some people saying that retail jobs aren't good jobs or don't pay a living wage, inferring that it wouldn't be a good enough reason to let them off the hook on their taxes.
I'm pretty sure that the $10-$11 per hour that a retail associate makes at an Apple store would be pretty welcome for the millions of people in this country who currently make $0 per hour. And there's the "halo" effect...
Let's say (hypothetically) Apple builds 50 new stores. They need to hire American construction companies to build them. Pay American ad agencies and advertising outlets to advertise them. Pay American companies rent on the property and pay American companies for the utilities and supplies that are used day to day.
They'll also pay property taxes and sales taxes on the things they buy. Their new employees will pay income taxes on the money they earn--and no longer receive money from the government for unemployment and other associated benefits. The employees of the companies contracted to do the builds will pay income taxes as well. Plus, sales taxes will be collected on the millions of dollars worth of goods they sell in these new stores.
On top of all that, all of those newly employed people will have money to spend that they didn't before. That money goes into other local (and non-local) businesses where the halo effect starts all over again.
And here's one other thing to consider, and I realize that some people don't understand this but it's a simple truth...businesses don't pay taxes. Ever. On Anything. Whatever they pay to the government gets passed on to consumers in the form of higher prices up to the point where those prices are unsustainable. Then it gets passed on to employees in the form of lower pay, reduced benefits or by being made to do more work for the same pay when the company doesn't hire new employees.
Anyone who owns a business of any size understands this. It's just easier to get people to accept new taxes when they're being paid in by "evil corporations" than it is to ask individuals to foot the bill. The average person is just too short sighted to see that they are in fact still going to.
