Discussion in 'Members' Lounge' started by Briansol, Oct 18, 2010.
Obama: End tax breaks to stop overseas hiring - Yahoo! Finance
Thank your president.
Labor is the largest expense for most businesses.
So, if he repeals a tax cut, and their profitability is negatively effected, why would they shift labor back to American soil where it is more expensive anyway?
28% of millions of dollars = big money
US companies can avoid taxation on their foreign income by never repatriating the income. When the US tax rate is high (aka NOW), companies will look to "permanently reinvest" their earnings rather than repatriate.
If a company is already stuck supporting its US operations with foreign income, then taxing that income this will only kick more jobs out of the US.
Won't really affect us.
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