Many multinational corporations are lobbying Congress for a lower tax rate as well as a tax holiday to repatriate their profit windfall held overseas. Congress must not do either. After-all, Bush’s large tax breaks did nothing to create jobs or increase the well-being of the middle class. In fact the wealthy got much wealthier, a direct transfer of wealth from the middle class to the wealthy.
Likewise, in 2004 a tax holiday was passed and it failed to create jobs or increase economic activity. What it did is allow companies to buy back their stock with the windfall. This in effect increased the share price which as capital gains for the wealthy stock owner was only taxed at 15% as opposed to 36% if it were paid as dividends.
Do not be fooled, we are a great country. Our greatness provided the wherewithal for these corporations to make extreme profits that they could not make anywhere else. We are the country with a large consumer base that spends. We value products and services based on their worth. America’s worth is huge. It merits a higher tax than any other country inasmuch as it is not the country with the highest tax rate.
Corporations want their stock to be valued high. America must be valued accordingly.
My Book: As I See It: Class Warfare The Only Resort To Right Wing Doom
Book’s Webpage: http://bit.ly/aB9Zkz – Twitter: http://twitter.com/egbertowillies