Reply #27: "What's in a name? that which we call a rose [View All]

[No Elephants]

By any other name would smell as sweet....Romeo and Juliet, William Shakespeare

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Rolling Stone Magazine

Matt Taibbi

Taibbiblog

"Evil Corporate Tax Holiday Gains

The madness that is the proposed tax repatriation holiday is continuing and gathering steam. More and more members of congress are coming out of the woodwork, scratching their chins in contemplative consideration as it were, pretending that they’ve just realized what a great day a corporate tax holiday would be – not that they’ve taken gazillions of dollars from the firms lobbying for it or anything.

<snip>


Again, if they pass this thing one more time, the fiction of the "one-time holiday" disappears forever, and the next decade will see an explosion of exported profits, “transfer pricing,” and cunning use of correspondent banks to stealth-repatriate offshored funds. Everyone will know that the effective corporate tax rate has been dropped from 35 percent to 5 percent – all companies need to do is hide profits overseas and bring them back about once every presidential term or two.

This has the doubly negative effect of lowering revenue during the holiday years and reducing job investment in the intervening years, as private business revenue is kept outside the borders of the U.S. instead of staying here and dumped into the economy. Naturally, since this is the exactly stupidest thing federal lawmakers could consider doing, they are doing it."


http://www.rollingstone.com/politics/blogs/taibblog/evil-corporate-tax-holiday-gains-bipartisan-support-20110726