Jobs and taxes

funny how a one-off cash payment to the American taxpayer courtesty of Bush & Co. was designed to create jobs and stimulate the economy, but the exact same thing from corporations in now being prevented.

Under a Bush plan that allows companies to bring foreign profits into the US without additional tax penalties, these companies are restricted from spending the cash, though. So much for laisser faire GOP government.

In a setback for many of the biggest potential beneficiaries, the Treasury
Department said companies could not use their windfalls for repurchases of stock
or increases in shareholder dividends. [my emphasis]

what's more...

The rules would help companies finance some activities that do little to
directly increase employment, and a few - like corporate acquisitions - that
might lead to job cuts.

Coherent policy, huh?.

And then the potential Irish implications: A massive exodus of capital.

Despite the unenthusiastic response from investors to the new rules, the
tax break could provide a huge windfall to many technology and pharmaceutical
companies that have earned billions of dollars in low-tax countries like
Ireland. [my emphasis] Oracle, the business-software company, has estimated that its tax break on foreign profits could be as much as $650 million.

Will be interesting to see how Bertie spins this one...