WHY WOULD A US CORPORATION INVEST OVERSEAS PROFITS AT HOME?

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{ 5 comments }

Gee Wally June 28, 2011 at 6:11 pm

They think that giving the profits to their CEO’s as bonuses is money well spent.

Mr Wolf June 28, 2011 at 6:29 pm

They wouldn’t. The number one priority of U.S. corporations is make as much money as possible by any means necessary.

Shovel Ready June 28, 2011 at 6:35 pm

It would depend on the returns (specifically, the after-tax returns).

American Revanchist June 28, 2011 at 6:41 pm

The US could forfeit its position as having the highest corporate tax rates in the world.

NDMA June 28, 2011 at 6:47 pm

One legal responsibility of public corporations is to attempt through all legal means to produce a profit for it’s shareholders. US Corporations pay no US taxes for overseas profits unless they reinvest those profits in the US. As result the US tax code creates a disincentive for US Corporations to invest overseas profits at home. I think you can connect the dots from there! Lower or eliminate tax rates on corporate profits earned overseas and reinvested at home.

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