Diamonds and Dogs
The Good Old DaysThe Good Old Days
Back in 2005, thanks to the American Jobs Creation Act, US companies were able to bring back foreign subsidiary earnings and be taxed at 5.25%, a far cry from the traditional 35% tax that bringing home the money would cost them. Imagine that, instead of taxing great American companies like Microsoft (MSFT) and Amgen (AMGN) twice on international earnings, the leaders in 2004-2005 realized that giving a break on over-seas taxes would not only stimulate investment here in the US, but create jobs as well. Create jobs as well. Companies like MSFT are borrowing money at less than 1% interest instead of facing double taxation. If the government is serious about job creation, which they may not be (unemployed people on extended unemployment benefits can still vote), then easing the tax on international earnings is one of the simplest and effective ways to invest in the US. This isn't rocket science
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