Repatriation tax and you!


Big international corporations have been able to duck the IRS for years. Companies such as GE use their international stability to keep money out of the USA and importantly away from high American taxes. The estimated total of wealth of american companies in foreign bank accounts is roughly 1 trillion dollars. Apple and Cisco are leading the charge for a tax holiday that would allow american corporations to bring home this 1 trillion dollars free of charge. Is this fair?

These corporations have moved most of their manufacturing outside of the US while still maintaining US customers as their main source of revenue. They have been able to not give back to the american people without leaving american wallets. American tax payers are left without jobs and are left without any financial help from the big corporations who can hide their profits in offshore accounts.

Some, such as senetor schumer, would like to give a sort of tax holiday where the tax rate is brought down to 5% from its normal 35%. This would bring in roughly 50 billion dollars in taxes. The benefit is receiving all this money, but the negative is that it is still rewarding these companies who cheated american taxpayers out of jobs and taxes.

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3 Responses to Repatriation tax and you!

  1. tesoman says:

    I will focus on the point you made when you say, “These corporations have moved most of their manufacturing outside of the US while still maintaining US customers as their main source of revenue,” because if this was two days ago, I would have agreed with you.

    But recent studies have shown that the rising prices in offshoring to China has seen globalization come around and forced US companies into bringing factories back to states like North Carolina (http://www.dailymarkets.com/economy/2011/10/24/reshoring-manufacturing-is-coming-back-to-u-s/) It seems like there is a socio-economic change happening where Chinese workers are refusing to work for low wages in factories because of other opportunities while American workers are welcoming the work due to such high levels of unemployement. I would like to hear thoughts on this because, as mentioned before, I did not know this two days ago and can imagine others are finding this as new news.

    Another shock is that American companies are no longer using Chinese produced goods to sell to Americans but are shifting the process around: “One factory boss said he wanted to re-orientate his production of lamps towards China’s domestic market. “We’ve got a lot of rich people now,” he said, “and we want to offer them a complete American flavor.” He explained that middle-class Chinese associated American products with higher quality, and asked whether Green would work with him to bring U.S.-style lamps to the Chinese market.” (http://behindthewall.msnbc.msn.com/_news/2011/09/19/7763968-chinas-soaring-costs-could-help-american-jobs)

    What are your thoughts on this? Will China truly overtake America as the dominant super power?

  2. No, this is not fair! People aren’t allowed to “duck the IRS”, why should corporations (ecspecially giant coorporations that could provide a lot of money for our in-debt nation) be allowed to. They even have the profits to spare!

  3. Jordi says:

    Are US customers their biggest source of revenue? Can you check that?

    What do they do with the money overseas? Do they use it to finance overseas operations? I assume it gets reported in their financials? If it is untaxed, can it falsely inflate their financials in a given year?

    So many questions….

    Glad you will answer them in your White Paper. (laughs maniacally… 3;)

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