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Related: Editorials & Other Articles, Issue Forums, Alliance Forums, Region ForumsDoes Corp tax code send U.S. jobs offshore?
The charge could be dismissed as typical campaign-trail exaggeration during a Democratic primary season marked by populism, except for one thing. Many analysts say it's true. "The U.S. tax system does provide an incentive to locate production offshore," says Martin Sullivan, a contributing editor to Tax Notes, a non-profit publication that tracks tax issues.
At issue is the U.S. tax code's treatment of profits earned by foreign subsidiaries of American corporations. Profits earned in the United States are subject to the 35% corporate tax. But multinational corporations can defer paying U.S. taxes on their overseas profits until they return them to the USA transfers that often don't happen for years. General Electric, for example, has $62 billion in "undistributed earnings" parked offshore, according to recent Securities and Exchange Commission filings. Drug giant Pfizer boasts $60 billion. ExxonMobil has $56 billion.
http://www.usatoday.com/money/perfi/taxes/2008-03-20-corporate-tax-offshoring_N.htm
leveymg
(36,418 posts)Gambling in this establishment, outraged I say. Outraged.
Your winnings, sir?
Thank you. Round up the usual prisoners.
(or something like that)
jmowreader
(50,557 posts)I'm thinking of the Minimum Wage, the EPA and OSHA. It is a hell of a lot cheaper to make your crap in places where you can pay your workers $3 per day to toil in a factory that emits all manner of pollution and is a threat to the lives of everyone who works there.
Why do you think the republicans are so hot-and-heavy on getting rid of every regulation they can? It's because people won't pay 50 cents extra for a measuring cup or $2 extra for a pair of shoes made by an American with safe materials and good workplace hygiene.
valerief
(53,235 posts)But what gazillionaire is going to invest in that?
When people choose between goods based on price, they generally assume both goods are produced offshore, so why not get the cheaper one? If they were in a store that sold only American, it would be a different story.
jmowreader
(50,557 posts)This is my experience from working retail: people will go out of their way to buy the cheapest thing available. You can stick the American product on a wingstack in the aisle so it'll be prominent, sign it "made in the USA," write "American Made!" on the boxes, whatever you can think of, and people will walk past all your hard work to pick up the Chinese item that's five bucks cheaper because "it's cheaper and it'll work."
If you had a store that sold only American, people would go in there, check the price then go to another store and buy a Chinese one.
valerief
(53,235 posts)then Americans might, out of support, shop there.
joeglow3
(6,228 posts)Do away with this, and you will see corporate headquarters fleeing the US.
FreakinDJ
(17,644 posts)And support and condone their actions
If they want to cut their selves off from the Largest Consumer Market place on the planet then so be it
Zalatix
(8,994 posts)joeglow3
(6,228 posts)I am a corporate tax accountant in one of these companies. The LAST thing I would want is for my job to be shipped overseas. However, if you want to resort to calling names and making assumptions, then so be it.
Zalatix
(8,994 posts)Hand all their IP over to new companies that'll hire here.
Send a message to the world that we won't tolerate the endless flow of jobs out of the country.
joeglow3
(6,228 posts)While I agree with the intentions, I have no desire to be China.