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Pastimes : Clown-Free Zone... sorry, no clowns allowed -- Ignore unavailable to you. Want to Upgrade?

To: ild who wrote (262493)	10/3/2003 12:28:11 AM
From: ild	Read Replies (2) \| Respond to of 436258

Asset and Debt Deflation in the United States How Far Can Equity Prices Fall? Full doc levy.org Highlights levy.org

To: ild who wrote (262493)	10/3/2003 10:23:05 AM
From: Bill/WA	Read Replies (1) \| Respond to of 436258

From the article in the NY Times nytimes.com. posted by ild Message 19364757 <<American companies can usually defer paying taxes on foreign profits as long as they keep the money outside the United States. Much of that money is reinvested in foreign operations, and some is parked in passive investments.>> <<"The company that left Louisiana is going to pay a 5 percent tax on the widgets they make overseas, and the company that stayed in Louisiana is going to pay a 35 percent tax," said Senator John B. Breaux, Democrat of Louisiana. "If that isn't an incentive to leave, I don't know what is.">> OK, let’s see. My small, non-descript US company, which captures 90% of its product in upper BC and the Yukon Terr’s could set up an sales office in Canada and my effective US tax rate would be 5%, eliminating the ultimate liability of a persistent 30% tax liability. <<Supporters say the six-month tax holiday could lure as much as $300 billion back into the United States, which in turn would increase investment and create jobs.>> Uh, I don’t think so. I think I’ll take that savings and invest in some promising gold areas in Canada. Need conformation? <<"The company that left Louisiana is going to pay a 5 percent tax on the widgets they make overseas, and the company that stayed in Louisiana is going to pay a 35 percent tax," said Senator John B. Breaux, Democrat of Louisiana. "If that isn't an incentive to leave, I don't know what is.">> Hey, who is this guy? Shut him up! He’s going to kill the goose that laid the golden egg! <<Critics also warn that there is no guarantee that the companies will invest their repatriated profits in new factories or larger work forces. Indeed, Republican lawmakers defeated an amendment offered by Mr. Breaux on Wednesday that would have required companies to reinvest their foreign profits in things like new equipment. >> Ah, my lobbist are doing their job with the lawmakers now! <<Lawmakers say the measure has a strong chance of becoming law. The Senate bill has support from most Republicans as well as some Democrats. In the House, the Republican chairman of the House Ways and Means Committee, Bill Thomas of California, has proposed a similar plan.>> Boy, I bet this Thomas fellow is going to have some explaining to do next election, that is if there’s anyone left in his state. <<The added political allure is that, at least on paper, the measure looks cheap. Congressional analysts estimate that the measure would actually increase tax revenue by several billion dollars in the first year because corporations would pay the 5 percent tax on all the profits they bring back home. Over 10 years, the Joint Committee of Taxation estimates, the Treasury would lose about $3.7 billion.>> Hey congress, here’s a brain f@rt. Why not pass a law that makes corporations pay AT LEAST the same rate as they do with US production if you want to increase tax revenues? Oh, and it just might save a few jobs here in the US. However I do understand where you’re coming from…you can hype this as producing more US jobs in US corporations (just don’t mention the fact that the REAL employment increase will be in India and China at 1/20th the cost). And at the same time you, congress, can accept all the campaign money from the affected corporations. Sorry for the rant, Bill/WA