Friday, October 14, 2011

Another Corporate Tax Holiday: 1% WIN, 99% Lose

Can hundreds of lobbyists and 50 million dollars cost the 99% 78 billion in lost revenues?  Most likely, yes. Over a trillion dollars is being stored in offshore bank accounts.  US companies can't bring those profits home without paying taxes on them.  There is a coalition of large corporations, called WIN (Working to Invest in America now)  which is lobbying heavily to reduce that tax and to offer a corporate holiday, in return, they promise: jobs.  Its a great deal for the 1%, they spend 50 million, get 78 billion.  The US offered a similar corporate holiday in 2004 and the results were dismal.  
From the Institute for Policy Studies:
58 corporations that benefitted from the holiday slashed a total of nearly 600,000 jobs through layoffs while they collectively saved $64 billion (70% of the total tax break) from what they otherwise would have owed in taxes.
A review of U.S. employment data filed with the Securities and Exchange Committee found that 13 firms profiled in this report cut their U.S. workforces by 60,701 jobs in the two years following the 2004 tax holiday (2004-2006). The 13 companies are YUM Brands, General Electric, International Paper, Eastman Kodak, Kraft, Honeywell, Intel, Eli Lilly, Starwood Hotels, Praxair, Lexmark International, Hasbro and Boston Scientific.
 Even the Heritage Foundation is saying that the corporate tax holiday is a bad idea and that it doesn't create jobs.  Jeffrey Immelt the CEO of GE, in a 60 minutes interview admitted that the last tax holiday didn't create jobs.
IMMELT: When it happened last time, it didn’t [create jobs].
IMMELT: So there’s plenty of evidence that says that I’m not right about that. In other words, do I know how many jobs it’s going to create? I don’t. But it can’t intellectually be any good to anybody to have $1.2 trillion outside the U.S.
If the US offers another tax holiday, corporations will continue to hide their money in offshore accounts waiting for, the inevitable future tax holiday.  The 1% will benefit immensely from another corporate tax holiday(WIN) and the 99% will Lose tax revenue that could build infrastructure and pay for education in this country. 

Job Destroyers Don't Deserve a Tax Holiday
The list of corporations supporting the WIN campaign.

Click here to send an E-Mail to your members of congress urging them to vote NO on another corporate tax holiday. 
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