As I wrote elsewhere, the companies are doing what governments permit. The claims by companies are given sincere attention by government, because companies are powerful speakers. Why should government listen to its puny electorate, anyway? They don't seem to matter.
Government expenditures and revenues are in need of some adjustment, with many locked-in relief and wartime programs that stagnate the US financial picture. Corporate grievances about taxes, though, carry zero legitimacy as long as the tax burden on the majority of individuals in this country is not addressed as well. Companies take their business to foreign lands where their safe passage is guaranteed by not only American's hard-earned money, but the lives of its soldiers. Then they whine about not getting a free ride, and use the word 'repatriation' like we're supposed to be overjoyed to see them carry their share of the tax burden. If the people running these companies don't want to make their headquarters in the US, I for one will not be sad to see them change their citizenship entirely.
This is just unfair! I do understand government incentives for large corporations to encourage local investments etc. But these continued breaks for the rich with no tax holidays for ordinary Americans is unacceptable.
But that doesn't mean that companies should bargain for tax holiday to repatriate earnings from offshore. This shows the oppurtunistic nature of the companies. As pointed out in the article Google managed to pay taxes on overseas earnings at a measly 2.4 percent rate by employing strategies. I just wonder if 2.4% is such a big number?
"A stark example of the fundamental unfairness that is now so widespread was in The New York Times on Friday under the headline: “G.E.’s Strategies Let It Avoid Taxes Altogether.” Despite profits of $14.2 billion — $5.1 billion from its operations in the United States — General Electric did not have to pay any U.S. taxes last year."
The CEO of GE will be travelling with President Obama to India soon to talk about opening a new manufacturing facility there. Does anyone really think this tax holiday is going to do more than increase the padding in already fully lined pockets of the privelaged few?
Why should the wallowing and disappearing middle class shoulder the tax burden of the few who hold >60% of the wealth in the US.
If companies want tax breaks to bring operations back to the US, then they have to somehow prove that the money is being spent according to the deal and not to just show better profits so that upper level management gets a bigger bonus. I'm not sure who these companies think they are cheating, the US economy is struggling and unemployment is still high. If we continue going down this path, where will we end up? How is it fair that the consumer as well as the smaller business gets to pay higher taxes than the company that is hoarding cash while shipping employment overseas. Who doesn't see the inequity in this formula?
I believe the one-time infusion of cash won't do much to stimulate the economy, anyway. In order to create long-term investment and jobs, the overall tax program has to be rehauled. On paper, the corporate tax rate is something like 35%. In reality, loopholes make it lower. If the US could come to a happy medium, then compnaies wouldn't be so anxious to keep money overseas.
EBN Dialogue enables and encourages you to participate in live chats with notable leaders and luminaries. Not only editors and journalists, but the entire EBN community is able to comment and ask questions. Listed below are upcoming and archived chats.
Thailand Stages a Comeback Join EBN contributor Jennifer Baljko on Thursday August 23, 2012, at 11:00 a.m. EST for a live chat on how electronic manufacturers in Thailand have shored up their supply chain to reduce the impact of future natural disasters.
Microsoft Surface: Potential Winners & Losers What are the implications for the electronics industry supply chain of Microsoft Corp.'s decision to launch its own tablet PC? Join industry veteran and EE Times' systems and OEM expert Rick Merritt on Tuesday, July 3, at 12:00 pm EDT for a Live Chat on this subject.
Join EBN contributor Jennifer Baljko on Thursday August 23, 2012, at 11:00 a.m. EST for a live chat on how electronic manufacturers in Thailand have shored up their supply chain to reduce the impact of future natural disasters.
Peter Drucker famously said "Trying to predict the future is like trying to drive down a country road at night with no lights while looking out the back window." Yet in the razor's-edge world of electronics—with a lean supply chain and just-in-time demands—the need to know the future is vital.
While no one really can accurately predict the future, we can take guidance from another Drucker saying which is the best way to predict the future is to create it.
You've heard the saying "the No. 1 supply chain risk is your people." That hasn't always been the case. But today's complex global supply chain requires a new type of multitalented employee. It's one who understands, finance, marketing, economics, is savvy with technology, graceful with relationships and can think analytically.
Where are these people? Are universities properly preparing the next generation supply chain professionals? How do train your existing workforce for these new, demanding positions?
Brian Fuller, editor-in-chief of EBN, will lead a 60-minute Avnet Velocity panel discussion that will ask and answer these and other questions swirling around today's supply-chain talent challenges.