There’s news that global corporations with headquarters in USA are asking for a tax holiday on money earned outside the USA returned to the USA. They want the 35% tax rate normally applied to be reduced to 5%. The hope is that this will result in the money being reinvested to create new jobs in the USA.
I know a bit of maths and I figure that, if M$ moved 90% of its employees to Mumbai, India, brought the profits home and paid less tax, the measure would actually reduce jobs in the USA. What am I missing? M$ pays about $4 or $5billion per year income tax in USA. If they exported jobs, probably to lower wage countries like India or China, they would have lower costs and pay lower taxes under this measure… Hmmm.
Congress debates jobs and Jobs