Corporate Tax Cuts = Profit to US Treasury

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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.

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