Aug 6, 2007
In 2004, a law allowed big companies to bring home their profits from overseas investments at a much lower 5.25% tax rate instead of the official 35% rate. Supposedly, the companies would invest their profits here, creating jobs.
The pharmaceutical industry has made the biggest use of the law, bringing home 100 billion dollars. Pfizer alone brought home 36 billion dollars. How many jobs did it create? Actually, none. It laid off 8,000 workers in 2006 and announced another 10,000 layoffs for this year.
That’s text book economics – capitalism is functioning just the way its apologists applaud!