Posted 2 years ago on Oct. 4, 2011, 6:49 p.m. EST by StriveToBeInformed
from Elmont, NY
This content is user submitted and not an official statement
Here's an article from CNBC that covers the story (somewhat); It's super short: http://www.cnbc.com/id/44773176
Basically corporations usually have to deal with a 35% tax when they bring their profits back into the U.S. If this measure were to pass they'd only have to pay a 5% tax. This is being proposed under the guise that by allowing these companies to keep more money, they can then use that money to invest in job creations. Now, let's think back to 2004 when the same argument was made and a tax holiday was actually given to corporations. What did they end up doing with the money? To everyone here it really shoudln't be much of a surprise. They used it selfishly, to buy back their own shares and keep the profits to themselves. Did they make plans to stimulate the economy by creating more jobs and hiring more people? Of course not. I'll point out that people are saying Congress should take the opportunity to handle this situation really intelligently and give these Corporations this tax break, but with the requirement that they use the 30% they are now allowed to keep to reinvest in the U.S. economy through job creation etc in ways which would help the public at large. Sounds like a bit of a nice play right? And let's be honest, who doesn't want more employment opportunities? (Don't worry I know I'm circumventing some of the key issues of the OWS movement here since i'm talking about more people working for the corporate sector, but it's more to try to make a point about the possible effects of a tax holiday) Now, some of you should already know that just because something is "required" by law, doesn't mean it happens so of course the corporations almost completely disregarded any of the requirements of the tax holiday and pocketed the money for the most part. If you want more detailed and (reliable I'd say) sources on what exactly happened, check out this link, especially the paragraph that starts with the bolded sentence "Requirement to reinvest": http://www.cbpp.org/cms/index.cfm?fa=view&id=1010
Sorry, I went on a bit of a longer shpeel than i anticipated, but all in all what i'm trying to say is this new Tax Holiday has been gaining momentum in Congress recently and it BETTER NOT get passed. I'd consider it a huge slap in the face at the OWS movement as a whole and (I feel a bit cliche using this term since it's been repeated numerous times these past few weeks) to the 99% who are already getting screwed over and over.
Just thought I'd put an immediate issue on the forefront that we can stop in it's tracks if we try.
And I wanted to know what you all thought about the issue.