Apple, Google, Microsoft Sitting on 58 Billion in Overseas Profits, Blackmailing Us to Avoid Taxes
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7. It’s all about eliminating taxes on Corporate America.
After the last tax holiday corporations moved even more money overseas than they did before, concludes a report by Thomas Brennan of the Northwestern School of Law:
“[S]ince the holiday window, there has been a dramatic increase in the rate at which firms add to their stockpile of foreign earnings kept overseas…. This signal operates to condition those subject to the rules to anticipate the opportunities of future holidays and arrange their affairs accordingly….The fact that such conditioning can occur is certainly not new, and it dates at least back to Pavlov and his dogs.
But our Pavlovian corporations are smarter. They know that if they continue moving more and more money overseas, they can blackmail Congress into permanently reducing corporate taxes to a pathetic 5.25 percent or lower. Why not zero? Already various conservative leaders are jumping on the bandwagon.
So, if you still think that a rerun of the tax holiday fantasy is going to create new jobs, please share your excellent meds with the rest of us.
Les Leopold is the executive director of the Labor Institute and Public Health Institute in New York, and author of The Looting of America: How Wall Street's Game of Fantasy Finance Destroyed Our Jobs, Pensions, and Prosperity—and What We Can Do About It (Chelsea Green, 2009).