Aug 1, 2011
Some politicians are proposing another tax holiday for big corporations – with the b.s. excuse that it will create jobs.
A “tax holiday” lets big companies, like GE or Google – who already juggle their books to keep profits overseas – bring back this money. If it returns as profits from overseas during the “tax holiday,” then the companies will be taxed only at a 2 or 3% rate.
In reality, GE used this same game – a “tax holiday” – to avoid taxes in 2004. With or without a “tax holiday,” GE has avoided paying taxes on its 14 billion dollars in profits – and received federal bailout millions and laid off workers. In addition, its pals in Congress, who specialize in corporate loopholes, gave GE a three billion dollar tax credit.
No jobs were created! Only profits.