Home
Forums
New posts
Search forums
What's new
New posts
Latest activity
Members
Current visitors
Log in
Register
What's new
Search
Search
Search titles only
By:
New posts
Search forums
Menu
Log in
Register
Install the app
Install
Home
Forums
Brown Cafe Community Center
Current Events
US national debt
JavaScript is disabled. For a better experience, please enable JavaScript in your browser before proceeding.
You are using an out of date browser. It may not display this or other websites correctly.
You should upgrade or use an
alternative browser
.
Reply to thread
Message
<blockquote data-quote="DS" data-source="post: 861024" data-attributes="member: 556"><p>I don't pretend to know anything about the deficit,or US politics.</p><p>I found this blog interesting .</p><p><span style="font-size: 10px"></span></p><p><span style="font-size: 10px"><span style="color: #8b4513">Yep... those Washington politicians are convinced they need to cut Social Security, cut Medicare, cut Medicaid, cut education funding, cut this and cut that. But then they came up with the real "winning idea" to deal with the deficit. Why just cut expenditures when you can cut revenue? So they are now talking about a tax holiday for the "job creating" big corporations!</span></span><p style="margin-left: 20px"><span style="font-size: 10px"><span style="color: #8b4513">Here’s how it works: the tax laws say that companies can avoid paying taxes as long as they keep their profits overseas. Whenever that money comes back to the U.S., the companies have to pay taxes on it.</span></span></p> <p style="margin-left: 20px"><span style="font-size: 10px"><span style="color: #8b4513"></span></span></p> <p style="margin-left: 20px"><span style="font-size: 10px"><span style="color: #8b4513">Think of it as a gigantic global IRA. Companies that put their profits in the offshore IRA can leave them there indefinitely with no tax consequence. Then, when they cash out, they pay the tax.</span></span></p> <p style="margin-left: 20px"><span style="font-size: 10px"><span style="color: #8b4513"></span></span></p> <p style="margin-left: 20px"><span style="font-size: 10px"><span style="color: #8b4513">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.</span></span></p> <p style="margin-left: 20px"><span style="font-size: 10px"><span style="color: #8b4513"></span></span></p> <p style="margin-left: 20px"><span style="font-size: 10px"><span style="color: #8b4513">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..</span></span></p> <p style="margin-left: 20px"><span style="font-size: 10px"><span style="color: #8b4513"></span></span></p> <p style="margin-left: 20px"><span style="font-size: 10px"><span style="color: #8b4513">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.</span></span></p> <p style="margin-left: 20px"><span style="font-size: 10px"><span style="color: #8b4513"></span></span></p> <p style="margin-left: 20px"><span style="font-size: 10px"><span style="color: #8b4513">Companies used dozens of fiendish methods to keep profits overseas, including such scams as “transfer pricing,” a technique in which profits are shifted to overseas subsidiaries. A typical example might involve a pharmaceutical company that licenses the rights or the patent to one of its more successful drugs to a foreign affiliate, which in turn manufactures the product and sells it back to the U.S. branch, thereby shifting the profits overseas.</span></span></p> <p style="margin-left: 20px"><span style="font-size: 10px"><span style="color: #8b4513"></span></span></p> <p style="margin-left: 20px"><span style="font-size: 10px"><span style="color: #8b4513">Companies have been doing this for years, to incredible effect.</span></span></p> <p style="margin-left: 20px"><span style="font-size: 10px"><span style="color: #8b4513"></span></span></p><p><span style="font-size: 10px"><span style="color: #8b4513">When will the American people learn to stop electing lackeys for big business and vote in politicians who are responsive to the needs of the bottom 99% of the population?</span></span></p><p><a href="http://ryviewpoint.blogspot.com/2011/07/how-to-fix-debt-limit-tax-break-for.html" target="_blank">http://ryviewpoint.blogspot.com/2011/07/how-to-fix-debt-limit-tax-break-for.html</a></p></blockquote><p></p>
[QUOTE="DS, post: 861024, member: 556"] I don't pretend to know anything about the deficit,or US politics. I found this blog interesting . [SIZE=2] [COLOR=#8b4513]Yep... those Washington politicians are convinced they need to cut Social Security, cut Medicare, cut Medicaid, cut education funding, cut this and cut that. But then they came up with the real "winning idea" to deal with the deficit. Why just cut expenditures when you can cut revenue? So they are now talking about a tax holiday for the "job creating" big corporations![/COLOR][/SIZE][INDENT][SIZE=2][COLOR=#8b4513]Here’s how it works: the tax laws say that companies can avoid paying taxes as long as they keep their profits overseas. Whenever that money comes back to the U.S., the companies have to pay taxes on it. Think of it as a gigantic global IRA. Companies that put their profits in the offshore IRA can leave them there indefinitely with no tax consequence. Then, when they cash out, they pay the tax. 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. Companies used dozens of fiendish methods to keep profits overseas, including such scams as “transfer pricing,” a technique in which profits are shifted to overseas subsidiaries. A typical example might involve a pharmaceutical company that licenses the rights or the patent to one of its more successful drugs to a foreign affiliate, which in turn manufactures the product and sells it back to the U.S. branch, thereby shifting the profits overseas. Companies have been doing this for years, to incredible effect. [/COLOR][/SIZE][/INDENT] [SIZE=2][COLOR=#8b4513]When will the American people learn to stop electing lackeys for big business and vote in politicians who are responsive to the needs of the bottom 99% of the population?[/COLOR][/SIZE] [URL]http://ryviewpoint.blogspot.com/2011/07/how-to-fix-debt-limit-tax-break-for.html[/URL] [/QUOTE]
Insert quotes…
Verification
Post reply
Home
Forums
Brown Cafe Community Center
Current Events
US national debt
Top