Warning!- watch Obama's speech(& policy decisions the next month or 2)for 'repatriation tax holiday'

[stockholmer]

The last one occurred after a December 2010 meeting with 20 CEO's (such as GE's Jeffrey Immelt) and hedge fund managers. It allowed the multinationals to bring in over $1 TRILLION in profits from offshore accounts such as the Cayman Islands basically tax free (avoiding over $350 billion in taxes). In return, they promised to use the money for job creation, etc. Of course this didn't happen, all they did was buy up their own stocks, and other financial chicanery, thus allowing billions in bonuses and dividends to be paid out, whilst sitting on the remainder.

This will probably NOT be mentioned, but read the fine print, and watch carefully for an announcement of this blatant corporatist fraud.

This time they are looking to bring in over $3.3 trillion, thus avoiding over $1.1 trillion in taxes. The total tax revenue lost between the 2 repatriation tax holidays (around $1.4 trillion) will thus be almost TWO TIMES greater than the total tax revenue lost for the first 5 YEARS of the Bush tax cuts.

Talk about corporate theft.

This is a sample of the Bush income tax cuts

1998 - 828.6 in billions of constant dollars (1998 = 100)
1999 - 860.5
2000 - 950.9
2001 - 915.1 Bush tax cuts passed in June 2001
2002 - 777.7
2003 - 703.1
2004 - 698.1
2005 - 773.8
2006 - 844.0 5 years later tax revenue was still down from 2001

http://www.koch2congress.com/7.html


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background

http://blogs.reuters.com/frontrow/2011/06/21/the-wishful-thinking-behind-a-tax-repatriation-holiday/

http://www.zerohedge.com/article/here-it-comes-democrats-considering-tax-repatriation-holiday-economic-massacre

http://www.nakedcapitalism.com/2011/01/john-bougearel-claims-the-job-market-will-boom-are-entirely-unsubstantiated.html

http://www.nationaljournal.com/budget/obama-team-wants-business-buy-in-on-corporate-tax-reform-20110124

http://www.huffingtonpost.com/2011/06/22/small-business-tax-holiday_n_881597.html

The 2004 Repatriation Tax Holiday Did Not Create U.S. Jobs

http://taxprof.typepad.com/taxprof_blog/2011/08/the-2004.html

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Another thing to worry about from the speech is the effect that a tremendous start-up in various borrowing facilities (in the hundreds of brillions of dollars plus) to small and medium businesses will have on inflation. As these hundreds of billions of dollars are loosed in the economy (they are currently parked on and off-balance sheets of the biggest banks , again many times in off shore accounts and speculative investment vehicles such as CDO's' and CDS's, etc.), the monetization effect will kick in, and the velocity of money will start a huge surge in core inflation.

[wildbilln864]

1. k&r! nt

[RKP5637]

2. I'm not expecting to see much for "we the people." I am no longer

an optimist. I used to be, a perpetual optimist, but no longer. It's damn clear to me what the priorities are, anymore, of the US.

[Supersedeas]

3. a politics that caters to the highest bidder

[RKP5637]

4. Yep, and sadly it cuts across all political parties. n/t

[stockholmer]

5. update,the Republicans talked about this horrendous repatriation tax holiday, lets see if Obama does

This MUST NOT be allowed to pass again! It is a not only a HUGE theft, but those 3.3 trillion dollars will drive core inflation sky high if they start to flow into the monetary supply.

[Safetykitten]

6. It's in the game.