“The wealthy are going to create tremendous jobs. They’re going to expand their companies,” Trump asserted during the first presidential debate. “They’re going to bring $2.5 trillion back from overseas, … to be put to use on the inner cities and lots of other things, and it would be beautiful.” During the third debate he promised that “We’re going to start hiring people, we’re going to bring the $2.5 trillion that’s offshore back into the country. We are going to start the engine rolling again.”

What would companies do with all that money? Doug Holtz-Eakin, a prominent economist who advises multinationals, explained in 2013 that they’d “Invest, expand payrolls and create jobs. … A temporary tax holiday on foreign earnings could add up to $440 billion to the U.S. gross domestic product and create up to 3.5 million jobs.”

Cisco, the California-based IT giant, has $58 billion overseas and has long been one of the most outspoken corporate proponents of a tax holiday. Its previous CEO John Chambers claimed in 2010 that profit repatriation “could be used for creating jobs, investing in research, building plants, purchasing equipment, and other uses.”

But on a November 16 earnings call, Cisco’s CFO Kelly Kramer told securities analyst what the company would actually do with all that money. First it would make changes to its debt structure, and then “we would have a blend of actions we can certainly take with our dividend as well as our share buyback, as well as leading flexibility for us to be able to do M&A and strategic investments.”

Click Here: essendon bombers guernsey 2019

© 2020 The Intercept / First Look Media

Leave a comment

Your email address will not be published. Required fields are marked *

Recent Comments