United States Senator Rand Paul
Senator Rand Paul is seemingly obsessed with giving corporations another ‘tax holiday’ even though the last one proved a dud.
Paul has introduced S. 911, which would reduce the repatriation rate to 5 percent. Paul argues lowering that tax on companies would generate more revenue because it would incentivize U.S. investments.
His logic:
Paul said U.S. companies currently hold more than $2 trillion of profits overseas, but if the repatriation rate were lower than the current 35 percent, the companies would return to the United States.
“We can help fund new construction and repair by lowering the repatriation rate and bringing money held by U.S. companies back home,” Paul said. “This would mean no new taxes, but more revenue, and it is a solution that should win support from both political parties.
Yet, Senator Paul is obviously ignoring the history of the last tax holiday in 2004 which the US Department of Treasury had something to say about that one
In 2004, when the U.S. enacted a repatriation tax holiday, the goal was to encourage U.S. multinationals to pay bigger cash dividends from their overseas subsidiaries and use the cash to make investments in the United States. Unfortunately, there is no evidence that it increased U.S. investment or jobs, and it cost taxpayers billions.”
US Tax reform not only for corporations but also for a comprehensive US reform of the US Tax code has been long advocated, yet Congress to date cannot come up with a comprehensive plan. It’s my opinion, the reality is simply too much like work or work. 🙂
Categories: Economic policy
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Betcha, this Congress will cut the EIC that is for people with children, to ‘replace’ the loss.
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They will not stop bellyaching until their tax rate is at 0% and they will still be demanding write-offs and subsidies. No matter how low they adjust the rates they will lobby for lower. The only holiday these corporate and wealthy tax cheats deserve is a prison term or the very least stiff fines.
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I totally agree. Greed can never be satisfied, and as per the article, it’s been tried before and failed.
There’s nothing to stop the greedy from doing it all again, after they get a huge tax cut this time.
Rand Paul would say anything to pander to the Libertarians who want a dog-eat-dog society…no thanks.
“In 2004, when the U.S. enacted a repatriation tax holiday, the goal was to encourage U.S. multinationals to pay bigger cash dividends from their overseas subsidiaries and use the cash to make investments in the United States. Unfortunately, there is no evidence that it increased U.S. investment or jobs, and it cost taxpayers billions.”
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Tax Cheats is an apt description. They want the Military to protect the oceans so they can ship freight, they want Embassies in countries they do business with if they have a problem, etc etc yet they do not want to pay for any of it.
The thing that got me was the reduction in tax collection, when they are howling for offset’s for any safety net spending….but None for tax reductions. Where the heck do they think the money is coming from to pay for spending….a money tree?
The only thing these companies will do with the extra money is: buy backs on their stocks, driving up the their profits and give their CEO’s a bigger bonus. And make the stock market go up. It is another thing that really gets me, all this love of politicians for Wall Street and Banks. The two entities that brought a Depression and recessions. With the subprime auto loans and student loans, they’re fixing on doing it yet again.
On the other side, there will be few states that will benefit from any money they can get for infrastructure and Paul and ilk will Still increase the gasoline tax.
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