by TONI H - 11/6/12 6:11 AM
In Reply to: PS by JP Bill
invests in their own and expands or hires or buys more equipment until they know they aren't going to be hit with additional regulations and taxes and possibly lose government contracts come Jan 1.
You forgot about this information in your post......
>>>>Economists have pointed out that much of this "hoarded" cash is in the form of foreign profits, which corporations are hesitant to bring home, since that would mean surrendering up to 35 percent of it in taxes. This is probably why Microsoft borrowed $2.25 billion in unsecured debt last February, while sitting on $40 billion in cash and short-term securities, The Wall Street Journal speculated.
The researchers proposed the idea of a tax amnesty for repatriated cash, on the condition that the funds are put into an "infrastructure bank" for three years. That money would then be allocated to much-needed public infrastructure projects. In this scenario, 1.1 million new jobs would be created, and GDP would expand by 0.8 percent, the study predicts.
The "infrastructure bank" is more fantasy than reality, but sources hint that president Obama will call for cutting the top corporate tax rate later this month. If the plan goes through, will see if tempts our country's largest corporations to bring home some of their hoarded offshore loot, and put it in the pockets of the American people.>>>>
Why would any company bring home THEIR money just to give control of it all to the government to 'invest' instead of them?
Was this reply helpful? (0) (0)