1.31.2005
U.S. Corporate Welfare (IHT.com)
The New York Times
January 31, 2005
Earlier this month, Johnson & Johnson became one of the first major American corporations to sign on for a one-year "tax holiday" - a government-sponsored opportunity for American multinationals to bring their foreign profits back to the United States at a puny tax rate of 5.25 percent, compared with the normal corporate rate of 35 percent. Johnson & Johnson intends to repatriate $11 billion. And that is just the beginning of what is shaping up to be an unprecedented government giveaway.
.
The drug giant Schering-Plough has announced a coming $9.4 billion repatriation, and Eli Lilly has announced one for $8 billion. Many other cash-rich companies are expected to follow suit.
Over the long run, Congress' Joint Committee on Taxation projects that the holiday will allow companies to avoid $3.3 billion in taxes, an estimate that many tax experts think is low.
(More ... U.S. corporate welfare) ¶ 08:23
January 31, 2005
Earlier this month, Johnson & Johnson became one of the first major American corporations to sign on for a one-year "tax holiday" - a government-sponsored opportunity for American multinationals to bring their foreign profits back to the United States at a puny tax rate of 5.25 percent, compared with the normal corporate rate of 35 percent. Johnson & Johnson intends to repatriate $11 billion. And that is just the beginning of what is shaping up to be an unprecedented government giveaway.
.
The drug giant Schering-Plough has announced a coming $9.4 billion repatriation, and Eli Lilly has announced one for $8 billion. Many other cash-rich companies are expected to follow suit.
Over the long run, Congress' Joint Committee on Taxation projects that the holiday will allow companies to avoid $3.3 billion in taxes, an estimate that many tax experts think is low.
(More ... U.S. corporate welfare) ¶ 08:23
