Offshore stash won’t help middle class economy
In various threads one attractive idea keeps popping up: Provide tax cut incentives for the return of money that American corporations deposit in overseas banks (in Cayman, Dubai, etc.) so that they will use it here to build infrastructure, create jobs, and boost production.
It doesn’t work.
This was tried with the Homeland Investment Act of 2005. Billions of dollars were brought back, but according to MIT economics professor Kristin J. Forbes, for every dollar that was brought back, there were zero cents used for additional capital expenditures, research & development, or hiring and employee wages.
The money went into bonuses, shareholders, whatever. A lot of it belonged to the pharmaceutical business.
The fat cats who make money are determined to keep it in the hands of those who have money instead of putting it into the economy.
This link seems to work directly:
If it does, forget the following.
Arrival at the target article gives a link identification, but the website stops the link at the home page. Use their search option for The lost cause …. tax repatriation. In the list, click on the article: Here it comes: Democrats considering “Tax Repatriation Holiday” Economic Massacre.
http://zerohedge.com/article/lost-cause-tax-repatriation-or-folly-homeland-investment-act-part-2
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