Saturday, October 29, 2011
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Tax Cabbages and Things
With respect to any federal tax advice in this blog, it is not intended or written to be used, nor can it be used by any person or entity for the purpose of avoiding penalties imposed under the Internal Revenue Code, or for promoting, marketing, or recommending to another party, any transaction or matter addressed herein.
Just as conservatives can't imagine any tax increase would be good for the country, liberals can't imagine that any tax break for corporations could be good for the country, either. Although I am not knowledgeable enough about the investment and repatriation behavior of US corporations overseas, I am skeptical of claims that this will just hurt in the long run. Even if corporations will just stash profits overseas waiting for the next repatriation holiday, from the govt's point of view, a tax collected today is better than one collected tomorrow. And money invested in the US when repatriated today is better than money invested in the US when repatriated tomorrow. A fight over repatriation is probably a distraction from the need for corporate tax policy, and overseas tax policy in particular, to incentivize contructive behavior. This article, however, seems to reflect a kneejerk reaction to any potential "corporate tax break," period.
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