According to a new report today from Citizens for Tax Justice, the 285 members of the Fortune 500 that have parked money overseas would owe an estimated $433 billion in taxes if and when it is repatriated. No wonder these companies are working so hard to get a "repatriation holiday" even though the one given in 2004 did not yield any significant new investment, but lots of dividends and stock buybacks.
I definitely do not support a "repatriation holiday" and any overtures to such an effect would likely increase the moral hazard of companies parking these assets offshore and simply waiting for the government to give them a pass of the costs of repatriation. If having these assets within US borders is important to these companies, they should pay the fees. Perhaps the IRS should even move to assess some of these taxes in advance.
ReplyDeleteyeah I completely agree with Karl on this one. I'm not at all surprised that these companies would be trying to avoid these fees,its pretty standard for companies to find any loop holes available. There is no way that the US should allow them to get out of these taxes with another repatriation holiday.
ReplyDelete