U.S. corporations are making fewer domestic hires and investing less in U.S. operations, due to cash trapped overseas, according to a recent survey from the Association for Financial Professionals. High U.S. corporate tax rates create an incentive for companies to leave cash abroad, often permanently.
In follow-up questions to AFP's recent 2011 Business Outlook Survey, 26% of respondents with operations abroad say that excessive U.S. corporate tax discourages their organization from bringing cash back to the U.S. and using it to invest in corporate growth in the form of new hires, capital investments, or research and development.
U.S. companies can choose when and if ever to repatriate earnings that are taxable in the U.S.
Beacuse of the immediate tax consequences of bringing the funds back into the U.S., many companies are simply leaving the money overseas. Estimates have U.S. corporations holding $1 trillion in cash and cash-like investments abroad.
The large, well-connected corporations, have escape hatches. Enter the Wu-Tang Killa B's and Deadly D's:
ReplyDeletehttp://www.bloomberg.com/news/2010-12-29/dodging-repatriation-tax-lets-u-s-companies-bring-home-cash.html
Word.
The retarded voting parasites (Including Paul Krugman) are livid over the fact that there are actually unwilling slaves. These maggots believe the money is theirs.
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