Corporate Tax Holiday Seen Creating Jobs (a 12/31/03 Bush tax break)

[papau]

http://www.nytimes.com/reuters/politics/politics-congress-taxholiday.html

Corporate Tax Holiday Seen Creating Jobs
By REUTERS


Filed at 4:49 p.m. ET
WASHINGTON (Reuters) - A tax holiday for U.S. multinational corporations that would allow them to bring their overseas earnings back to the United States at a substantially lower rate would create hundreds of thousands of jobs, the measure's sponsors said on Tuesday.<snip>

The measure, attached to a business tax bill passed earlier this month by the Senate Finance Committee, would give multinational companies a year to repatriate foreign earnings at a 5.25 percent tax rather than the normal 35 percent rate.<snip>

The measure is part of the Senate version of legislation that would repeal a tax break for U.S. exporters that the World Trade Organization said violates global trade rules (repeal must be passed this year). <snip>

[cap]

1. yes... creating jobs overseas...

you are actually incentived to go overseas. Taxed at 5.25% instead of 35%. More jobs overseas. Who are they fooling?

[rapier]

2. dumb and dumber

Exactly. The logic of this is absurd, but then who expects logic. Now I suppose some of these pols and their backers actually believe this stuff but I hope most don't. I would rather have our leadership being lying bastards than dumb as a sack of rocks stupid.

[German-Lefty]

3. There is a point to this.

Germany tried doing the same thing. American investors can sneak money out of the coutry into into foriegn banks where they can then reinvest and all kinds of other illegal things, without Uncle Sam knowing.The tricky bit is getting the money back into your country if you want to spend it.

This bill basically says ok, bring your money back and we won't punish you. The problem is you can't do this all the time, or they'll never bring thier money back unless you give them another holiday.

So it may help the economy in the short term, but it's bad policy in the long term unless you can make it clear it won't happen again.

The real purpose is to pump the economy up in the short term, to get Bush reelected, and to help Bush's buddies get thier money back into the country so they can donate to the GOP.

That's my theory anyway.

[stevebreeze]

4. This si a lot like the last corporate tax cut Bushh passed...

it didn't creat any jobs either. One simple question; does YOUR boos hire if he makes more moeny or if he sees more demand?

My question is how can this illogical corp pork ever pass the laugh test?
:kick: