January 2nd 2012
Study Debunks Tax Repatriation Holiday Claims
A new study has cast doubt on claims from legislators and lobbyists that a tax holiday for multinational corporations on their repatriated foreign earnings would spark an economic revival in the U.S.
The study analyzes the impact of a tax holiday that was tried in 2004 and finds that it mainly benefited mature companies that already had the means to create jobs at home. The study was written by Lillian F. Mills a professor at the University of Texas at Austin, who carried out the research with Susan M. Albring, an assistant professor at Syracuse University, and Kaye J. Newberry, a professor at the University of Houston. It appears in the new issue of The Journal of the American Taxation Association, published by the American Accounting Association.
A group of multinational corporations, under the banner of the Win America Campaign, has been lobbying Congress for passage of repatriation legislation that would allow them to bring home approximately $1 trillion in foreign earnings at a reduced tax rate to spur investment in the U.S. They cite studies from Dr.
Tags: Claims, Holiday Claims
Whether you are well-versed in international economics or not, you’re probably aware that Europe is having substantial problems. You’re also likely familiar with the resulting worldwide ripple effects: uncertainty amongst investors, fears of a global double-dip recession, and widespread political upheaval, just to name a few. Of course, there are a number of prominent theories for how to solve Europe’s debt crisis, but given the depth and complexity of the problem, none is perfect and each requires tough choices to be made. People – not just in Europe, but around the world – need hope, however. We need a plan, a sense that these economic issues are finite and not permanently debilitating. So, with that being said, what say we take a quick look at four different courses of action that Eurozone governments can take, the pros and cons of each, and which will provide the most long-term benefit without causing short-term chaos.