Over $ 2 trillion is earned abroad and not returned to the American national economy because it will be taxed a second time at one of the highest rates in the industrialized world. This disincentive has also been a major reason for trillions of dollars more to be invested abroad and not at home.
Because there is no rational plan to repatriate these monies and keep investments at home, the economy suffers the loss of much needed revenue which could grow the economy, create full time jobs with high wages and begin the rescue of the middle class from future decline.
To escape uncompetitive corporate tax rates and earn the largest honest profit they can for their shareholders, which is their principal corporate responsibility, domestic firms are merging with smaller foreign companies and moving their new corporate identity overseas where they are no longer subject to the anti-business/ ant-profit policies that this administration is famous for. These mergers and relocations are called inversions.
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Schemes such as this are the hallmark of failing governments and oppressive regimes.
Larry Allison, co-host of the Vernuccio/Allison Report & contributing columnist for the New York Analysis of Policy & Government, filed this report.