Ten major U.S. corporations, including big banks Citigroup and Bank of America, laid off workers after enjoying a tax holiday in 2004-2005 that had been billed as a form of economic stimulus, said a report released on Tuesday..Fifty-eight corporations that accounted for 70 percent of overseas profits repatriated under the 2004-2005 tax break collectively saved $64 billion in taxes, then cut 600,000 jobs through layoffs, the report said..Legislation in the Republican-controlled U.S. House of Representatives would let them repatriate those profits at 5.25 percent, the same tax rate given to them under a similar tax holiday during the Bush administration.I would assume the 600,000 layoffs were the net result in the study.
Just as they are doing now, companies six years ago said that the repatriation tax break would boost jobs and the economy. But the institute said this did not happen, as earlier academic studies have also found.
"History shows that many 'tax holiday' companies use repatriated profits to reward executives and other shareholders, then lay off workers," said Chuck Collins, co-author of the report from the left-leaning institute. "Corporate tax holidays have resulted in precious few U.S. jobs."
At a time of soaring government deficits, the Joint Committee on Taxation, a nonpartisan congressional research arm, has estimated that a tax holiday, like the one proposed in the House and favored by WIN America, would eventually cost taxpayers about $78.7 billion over the next decade.
Tuesday, October 4, 2011
Tax Breaks to Corporations Do Not Create Jobs
Tax breaks to large corporations do not create jobs! It is a lie promoted by conservatives like Sean Hannity, who think with their pocket-books and not with the mind of Christ: