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in two thousand four
the bush administration and republicans which control both houses
of our government at that time or i should say of congress
past the
american job creation act
it was a one-time repatriation
of overseas profits a profits that have been parked overseas
that would reduce the corporate tax rate of
these corporations
by thirty percent
they would be subject to thirty-five percent of uh... a corporate tax rates
but if they repatriated
their profits which they've been keeping offshore
they could bring them back in a five percent rate yeah under understated
that the ability for corporations
to wait
and hide essentially or keep their money their profits offshore american
companies
for as long as they want and determine when they want to bring up this back was
a function of a la past during the eisenhower administration
he used to be
an american corporation doing business overseas
we have to repatriate their money every year
like anyone else
and be subject to taxes
in an effort
to help u_s_ companies
developed business around the world
and ostensibly uh... to help the rest of the world recover from
world war two
corporations were given a break
they were basically allowed
to keep their money offshore and bring it back when they wanted to
and be subject to no taxes until they repatriated at money
which allow them essentially to take uh... lot of those profits
and plant
basically shift them back into their overseas operations
and avoid taxes but if they wanna bring back profits
they would have to pay attacks is ultimately
so this american good job creation active of four
was to allow a one-time repatriation
holiday
that was supposed to provide all sorts of jobs
for americans all sorted out was the name of the the act
it was supposed to provide research and development
to grow our economy to prove
just how
how the the
the free market private markets could function
if only they didn't have this horrible expert
however a study by the national bureau of economic research
found that ninety
who percent
of the repatriated cash
was used not
to hire new employees
to invest in capital infrastructure
too
provider r_n_d_
but instead was used to pay for dividends
share buybacks or executive bonuses
nhan
and and that was done so
even by the companies that lobbied so intensely
had made so many promises written in sent
as to what they would do with that money and in fact many of those same companies
thousands upon thousands of layoffs
now of course we won't see
any meaningful reform that captures
these uh... literally trillions of dollars
which uh...
should be in it
the coffers of our government's general font
and being used to actually invest in creating jobs in this country
but also understand
for those of you
there's a great time for a libertarian colin tell me
why i'm so ron but before you do you should know
that the washington post
earlier this year analyzed thirty large companies listed on the dow jones
industrial average
they found that their tax rates
have fallen
even as their profits have risen
and that relative
to the late sixties and early seventies
companies listed on the current doubt thirty routinely sided u_s_ federal tax
expenses
that were twenty five to fifty percent of their worldwide profits
now most of them are reporting less than half of that share
so
as a function of profits
these corporations are paying less taxes than they have
i presumably any other time an in the past nearly seventy five years
not only that
as a function of g_d_p_
corporate tax revenues are at historic lows
as a percentage of g_d_p_
albeit going back only
to world war two
so at no time
have u_s_ corporations enjoyed
lower affective tax rates
and they enjoy now
so we have a problem in it is not that american corporations
can't compete