February 4, 2011

Corporate Tax Cuts = Profit to US Treasury

By admin

Erin Weir of Relentlessly Progressive Economics has posted an analysis of the impact of corporate tax cuts on the IRS and comes to this conclusion:

Statistics Canada figures indicate that US corporations had Canadian operating profits of $43.1 billion in 2007. Given that some operating profits are used to cover non-operating expenses like interest, US corporations were repatriating (rather than reinvesting) the lion’s share of what was left.Multiplying $30.4 billion by 35% indicates American tax obligations of $10.6 billion. But the IRS reports credits for Canadian taxes of only $8.3 billion. Therefore, the implied transfer of corporate tax revenue from Canada to the US treasury is $2.3 billion.

In other words, it may be a small sum compared to trillion dollar deficits, but we’re paying for the American military industrial complex with our tax cuts.

Way to go Stevie!

And Jack, Jack, Jack:  support Stevie’s new budget and the NDP will be sure to slip into oblivion.