Corporate Tax Holiday Would Shift Investment, Jobs Overseas: Report
by James Sunshine
06/24/11
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...
For the complete article, go to:
http://www.huffingtonpost.com/2011/06/24/corporate-tax-holiday-jobs-investment_n_883827.html
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