Aug 29, 2005
Last year Congress passed the so-called "Job Creation Act."In fact, it was nothing but a tax amnesty for U.S. corporations that do business overseas. They were allowed to bring their profits back, paying only 5¢ on the dollar in taxes. The "normal" tax for corporations would be 32¢ on the dollar. (Of course, most companies never pay that amount, thanks to all the tax exemptions given by Congress.)
So what were the results of this "job creation" act? Hewlett Packard is bringing back more than 14 billion dollars in profits while laying off 14,500 people; Pfizer is bringing back 37 billion dollars, while planning to close 20 factories.
The companies are laughing all the way to the bank over this latest Congressional joke.