KansasCity.Com has reported:
Stephen Mazza, a professor at KU’s School of Law, and two associates spent six months examining the effects of one part of the American Jobs Creation Act, a major tax overhaul passed in October 2004. They looked at a provision that gave companies a one-year window to bring overseas earnings back into the U.S. at a 5.25 percent tax rate, rather than the usual 35 percent, as a jobs-creation incentive. The three professors then looked at how much such companies as IBM, Pfizer, and Eli Lilly and Co. spent lobbying for the break, and how much they saved when it passed.
The result? Ninety-three of the country’s biggest multinational firms pulled in tax savings of more than $62 billion ‚Äî after spending just $283 million to lobby for the bill.
The study concluded that almost 500 companies got an average 22,000 percent return on their lobbying investments.
That’s the joy of offshore abuse to those who do it – it’s free riding on the back of those who really generate wealth.
That’s why it has to stop.