“Economists, businessmen, and politicians of every stripe have spent months talking themselves hoarse about how to get the roughly $2 trillion in corporate reserves back into the economy,” Tory Newmyer reports for Fortune. “Get ready to start hearing a lot about that sum’s international cousin.”
“A group of tech, pharmaceutical and energy giants is readying a major lobbying blitz for a tax holiday that would allow them to bring home the estimated $1 trillion they’ve got parked overseas at a steeply discounted rate, Fortune has learned,” Newmyer reports. “The campaign is still in its planning stages, but sources close to the effort say Oracle, Cisco, Apple, Duke Energy, and Pfizer are among the major players looking to bankroll a coordinated, sustained pitch to sell policymakers on the idea.”
Newmyer reports, “Their aim is to win a one-year tax amnesty on their foreign earnings, allowing them to repatriate that money at a tax rate of about 5%, instead of the 35% they face now… Where will the White House come down? Obama’s economic team has been cool to the proposal in the past. But with the President scouting for opportunities to burnish his relationship with big business, he could give the idea a fresh look. Either way, he’s sure to get an earful about it on Thursday, when he makes an overnight trip to Silicon Valley to meet with tech industry CEOs and try to sell them on his budget.”
Read more in the full article here.
[Thanks to MacDailyNews Reader “Dan K.” for the heads up.]
Meet in the middle, do something like 12-15%. Good for the country, good for the businesses.
Wait, trying to get a Democrat to lower taxes? I didn’t know Obama was going to a comedy show with Steve Jobs
At this point, Steve Jobs should tell Obama that Apple would be interested in buying an island to establish Apple’s own country. Maybe, something off California or New York. Would consider one of the islands in Hawaii. Other countries will be considered. Would consider converting a nuclear aircraft carrier to be mobile and will dock off the country that offers the best deal and conditions.
Apple does not need Obama! There are only about 50 countries with more cash than Apple! What does Obama have to offer Apple? He is gone in about a year or so anyway, Apple will be the last computer supplier standing when this is all over!
On a more serious note. Maybe the government would like to order or set up a grant for Apple to develop the world’s first true AI system. AI controlled robots could out produce cheep 3rd world labor. That would bring manufacturing and final assembly back to the USA.
For years, NASA tried to do it. Apple could get it done.
I think that would be IBM’s forte, given the recent stint of Watson on Jeopardy.
Nice bit of humor. But, in the interest of accuracy, the comparison was to the GDP, not the total worth of countries. The two numbers are vastly different.
I also need tax-holiday … if Gov reduces my taxes I can go on a holiday
Is this the meeting Zuckerburg is attending too?
What tech heavy weight advice will he bring to the table?
– How to get your room mates drunk and steal their ideas?
Yes, the mighty Zuckerburg has such a long and prestigious list of achievements in his life.
What a joke
That should work. Just freeze a few more Grannies by reducing heating assistance programs to make up for the revenue deficit in the budget.
They should treat companies like they do individuals. For individuals, if you don’t buy prescription drug coverage in a given year, you are assessed a permanent penalty. So for companies that don’t pay their taxes on time, they’ll pay higher rates next year, and more the following year. Since corporations are persons, treat them like the (nominal) two legged kind.
Everyone hates welfare … unless of course you’re a corporate officer.
Why does everyone look at nominal tax rate and ignore the gaping holes and write-offs that corporations enjoy? If you want to lower the nominal tax rate, fine — just make sure to close all the loopholes – ALL THE LOOPHOLES — when you do.
The old chestnut about us having a high corporate tax rate is pure BS. On paper-yes. In reality- no effing way. There are so many holes, exemptions and such that last year Exxon-Mobil profited more cash than any company in known human history and yet managed not only to pay no taxes- it got a refund from the Treasury.
Dirty little secret, people. regardless of who ran up what debt when, it has to be repaid or the interest serviced and that means taxes. It’s time corporate America paid up.