Matt Taibbi: Corporate Tax Holiday in Debt Ceiling Deal: Where's the Uproar?

[tpsbmam]

...there is a growing, and real, possibility that a second “one-time tax holiday” will be approved for corporations as part of whatever sordid deal emerges from the debt-ceiling negotiations.

He explains that this is is a major con job brought about by corporate lobbyists.

<snip>

Only there’s a catch. In 2004, the corporate lobby got together and major employers like Cisco and Apple and GE begged congress to give them a “one-time” tax holiday, arguing that they would use the savings to create jobs. Congress, shamefully, relented, and a tax holiday was declared. Now companies paid about 5 percent in taxes, instead of 35-40 percent.

Money streamed back into America. But the companies did not use the savings to create jobs. Instead, they mostly just turned it into executive bonuses and ate the extra cash. Some of those companies promising waves of new hires have already committed to massive layoffs.

It was bad enough when lobbyists managed to pull this trick off once, in 2004. But in one of the worst-kept secrets in Washington, companies immediately started to systematically “offshore” their profits right after the 2004 holiday with the expectation that somewhere down the road, and probably sooner rather than later, they would get another holiday.

IMO, this is a Taibbi must read! There are times when picking 4 paragraphs just doesn't do the piece justice -- this is one of them.

[jtown1123]

1. I heard about this. Obama keeps blaming the Repukes for blocking this. He wants this BIG time.

[Autumn]

2. Have we all lost our minds?

Just some of us Matt, just some of us. K/R

[indepat]

3. Callous, sordid, and obscene depravity roaring in high gear

:patriot:

[Ruby the Liberal]

4. Uproar? This is the first I have heard of this.

[myrna minx]

5. Wow - this is sick. K&R n/t

[hifiguy]

6. I wonder what the apologists are

going to have to say about this. Perhaps we are just too dumb to understand that being cheated, snookered and pickpocketed is GOOD for us and advances (what used to be) the Democratic cause.

[nashville_brook]

7. there's plenty of uproar amongst Americans -- beltway zombies? not so much.

[Skink]

8. This is the best tax free loan you'll ever get.

Tom cruise in the Firm.

[hifiguy]

9. Kick

:kick:

[spanone]

10. the american people need to hire lobbyists...paid lobbyists get shit done

and there's no outrage because the media will not report on it.

rolling stone will, but that will not get on my local and national news

[Gin]

11. they will create jobs alright....outside of the US....

[girl gone mad]

12. k & r

[xchrom]

13. Recommend