Quote of the day: Hillary’s promised payoff

From Jon Schwarz, writing for the Intercept, on one of the secret deals promised by Hillary Clinton in her avid pursuit of corporateer big bucks:

American multinational corporations are currently stashing a staggering $2.4 trillion in profits — about 14 percent of the size of the entire U.S. economy — overseas. Multinationals are required by U.S. law to pay the statutory 35 percent tax on profits they earn anywhere on earth, but the tax is not assessed until the profits are brought back to the U.S.

This has allowed Corporate America to essentially hold U.S. tax revenue hostage, refusing to pay its taxes until Americans become so desperate that they will cut a deal giving multinationals a special new tax rate.

This strategy has already paid off once, in 2004, when multinationals got Congress to let them bring back $312 billion in profits at a one-time rate of about 5 percent. The legislation required that the cash be used to hire Americans or conduct research and development. Corporations ignored these provisions and instead used the money to enrich their executives and stockholders, while cutting U.S. jobs.

Both Hillary and Bill Clinton clearly envision cutting a similar deal during a Hillary Clinton presidency, although presumably they intend for the corporations to keep their part of the bargain this time.

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