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It doesn't. It's a fantasy held by those with large amounts of stock in companies with lots of spare cash lying around in their foreign subsidiaries. The last
by rprasad 14y ago
It doesn't. It's a fantasy held by those with large amounts of stock in companies with lots of spare cash lying around in their foreign subsidiaries.
The last corporate tax amnesty on repatriated earnings did absolutely nothing to benefit the economy; it actually resulted in a net loss to the U.S. economy b/c the corporations repatrited the money without paying taxes on the repatriated...and did not pay the income out as (taxable) dividends. Many corporations still have this cash lying around.
- anamax 14y ago> it actually resulted in a net loss to the U.S. economy b/c the corporations repatrited the money without paying taxes on the repatriated and did not pay the income out as (taxable) dividends. Many corporations still have this cash lying around. In other words, you think that money that isn't paid in taxes has no benefit to the economy. You're wrong. Even the "cash" still lying around isn't doing nothing, it's being loaned out. Money that was spent (even on salaries) contributed to the economy.
- rprasad 14y agoSorry for the late reply, but my point was that this money wasn't put back into the U.S. economy in any form, including loans to other companies. They simply moved this money to their U.S. bank acounts, where it remains to this day.
- anamax 14y ago> They simply moved this money to their U.S. bank acounts, where it remains to this day. Do you really think that money sits in bank accounts? How do you think that banks pay interest on deposits and expenses?