Quote:
Originally Posted by tony286
http://www.huffingtonpost.com/2011/0..._n_883827.html
In recent weeks, Congressional support has been forming around the idea of another "repatriation tax holiday," reports the Wall Street Journal. The would mean corporations doing business overseas would be permitted to pay only 5.25 percent tax on earnings brought back to the United States for a temporary time period, as opposed to 35 percent corporate tax rate on domestic profits.
Proponents of the proposal claim a tax holiday will bring much needed capital back to the U.S. economy for investment. But not everyone agrees.
Following the conclusion of the last tax holiday, in 2004, corporations actually increased the rate at which they moved investments out of the U.S, according to a study by the Center of Budget and Policy Priorities. The decision to move overseas, the study claims, was at least partly in anticipation of there being another tax holiday.
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That's because it was only temporary.
What our govt. calls a "Tax Holiday" is business as usual in some countries. And since taxes are usually the biggest expense a company has (It's definitely my NUMBER ONE cost to do business)...it only makes sense to move somewhere else.
Hell, even The Beatles and The Stones left England because of the insane tax rates. Of course companies in 2011 are going to do the same.
And does anyone ever ask this: If a "tax holiday" brings in more money to the U.S. , then why don't we make it PERMANENT and bring all the companies in the world running to the U.S.?
Hell, they all want to be here anyway. But when you combine high labor costs AND the govt. trying to take most of your money...they just won't come here.