400 billion Corporate Tax forgiveness could trigger massive rally in the markets
Before we get into this, and why it could fuel a rally let’s look at how bad this scheme is and how clearly it illustrates that nothing but thieves rules Congress.
Average individuals working overseas have to pay taxes on their earnings in one form or another. However, the law is completely different from U.S Multinationals; they do not have to pay taxes ever on profits they have earned overseas until they bring that money home. If they never bring that money back to the U.S, they will never pay a dime in taxes. These massive companies are holding onto more than $2.1 trillion dollars of untaxed profits, and all of this money is conveniently held in tax havens. The tax bill for this would be rough $400 billion dollars.
The Corporate Vampires one of which is Carl Ichan are not asking but demanding the following:.
They won’t bring the money back and pay any taxes they owe until Congress reduces the taxes they owe to pennies on the dollar. In essence, they are telling Congress to let us get away with murder and only give us a very tiny sentence for any crimes we might admit to.
They also want the tax rate to be permanently lowered on all their future earnings. Talk about adding insult to injury. Some Republican leaders who are probably bought and paid for by the corporate world are suggesting that we eliminate taxation on foreign income permanently for corporations but not U.S Citizens.
Would it not be nice if the average Citizen had the same option where we could state “hey you know the tax rate is too high”; we want to renegotiate the rate or we won’t pay any taxes. However, we all know what will happen if we try this; The IRS will hunt you down.
Senator Warren called this program out for what it is “A giant wet kiss for the tax dodgers.”
As usual, the masses have no clue this is taking place right in front of their eyes because as usual, the media is not covering issues that matter. They continue to focus on crap and drama.
The corporations go on to raise the ante by stating that if they are not allowed to get away with murder, they will leave America. They don’t leave the U.S. They only move their headquarters, but they continue to operate in the U.S. In other words, it’s business as usual, but now they get to keep all the profits they made here and paid a significantly lower tax. This outright theft has to stop, but Congress does not have the balls or the willpower to do this. Instead, they are going to pass most likely a law that exempts them from paying any Tax.
How this debt forgiveness could trigger a massive rally
There is a way to benefit from this corporate Fraud. When this money comes back to the U.S tax-free where do you think it will go? The odds are very high that these funds will be used to fund additional stock buyback programs. In essence, there is the potential for 2.1 trillion to flood the markets. Share buyback programs extend the fraud; they allow officers to boost the EPS without having to do any real work or improve efficiency or come out with new products. You just reduce the number of outstanding shares by buying them back and viola the earnings per share spikes translation; this means the stock market will run a lot higher even the most ardent of bulls can envision.
Other Articles Of Interest
Federal Reserve existence based on Fraud (March 30)
Fossil Fuel Era over; End of Crude Oil (March 25)