"Repatriation"

[kentuck]

The one idea in the President's speech that might get thru the Congress is the idea of "repatriation". It was in Mitt Romney's plan also. That is, the American corporations overseas can bring their money back home to America at little or no taxes. Then they can create jobs with that money.

Doesn't that sound like a wonderful idea to you?

Otherwise, that money will stay in those other foreign banks. Is that what we want?

It seems as though our politicians are in such a small box that it is impossible for them to think of any other solutions? As I recall, the Fed loaned many trillions of dollars to these same foreign banks where these corporations are keeping their money? So they have no leverage?

As I recall, these same corporations get humongous tax breaks for doing business in these countries. Some end up paying no taxes at all. So the President and the Congress have no leverage?

Please don't piss on my boots and tell me it's raining...

[ck4829]

1. Legalized Money Laundering

"Hey guys, let's hold the money over here in this 'tax shelter' for a while!"

[FSogol]

2. We should launch a military attack (paging Seal Team 6) on the Cayman Islands, seize those funds,

and imprison the CEOs of any company that makes a claim on the missing funds. We should claim that the funds use was intended for terrorism.

How about it?

[Angry Dragon]

3. I believe it was 2004 when they first did this deal

and promised to create jobs with the money
same promises and they used the money to boost dividends and increase exec pay
Tried the same in 2007?? and did not pass

Why would it be any different this time??

[Selatius]

4. It's something I would not consider. It's putting the cart before the horse.

In my opinion, the only real way to get corporations to repatriate profits is if they see enough aggregate demand for products and services that they would need to bring the money back here in order to expand production, add more working hours, hire more staff, and invest in research/development to better meet that demand or risk being undercut by rival competitors that can meet the demand.

A jobs program that is sufficiently large enough that it increases demand could do it. In such a situation, I would not mind deficit spending, but at the same time, I'd cut from other areas, like tax breaks for oil and gas companies and cutting back on bloated military contracts in the defense budget.

I just do not see it as realistic to give them tax breaks on this deal in order to bring back money to an economy that wouldn't justify that movement. The only way producers increase production is if they first see a rise in demand, not prior to that point. You must have the demand there first as an incentive. Without that, you just have nothing except another giveaway to corporations.

[xchrom]

5. Recommend

[H2O Man]

6. Perhaps the single most

important point of the OP is that corporations hold far more power than politicians, in the USA. And while politicians may wave the flag now and again, the corporations have no sense of patriotism -- as they are not "people," despite what Willard says. Corporations have no sense of loyalty to the "American way of life," much less to the citizens of this nation.

[mmonk]

7. You have put your finger on the real battle.

[Sirveri]

8. All it means is that they will bring all of it over during the window, then wait for another.

Didn't we do this once before? So if they did it once they might do it again, so lets keep even more of our money overseas and play the waiting game. Awww look, poor people starving in the streets, isn't that funny, they should almost be ready to open that window again... OH LOOK, now we never have to pay taxes EVER AGAIN.

If they do this, it will destroy the progressive tax base of the country, expand the GINI coefficient, and lead to an eventual civil war.

[fasttense]

9. Tax cuts have never ever created jobs and never ever will create jobs.

It's a myth of profound stupidity because we see before us the results of tax cutting for job creation all around us right now.

Obama has bought into the bush and RepubliCON myth.

There was not one single thing in his proposal that would help me. In fact, there were several thing that would hurt me, like destroying Medicare, Free trade agreements and more tax cuts for the rich.

I was expecting new and profound solutions to our never ending Great Recession. Instead, I got bad RepubliCON ideas and really bad RepubliCON ideas.