Fix the Debt
....beware of Greeks bearing gifts.
It's budget showdown time in Washington. With various tax increases and spending cuts set to kick in at the end of the year, the pressure is on for Republicans and Democrats to make a deal.
A major player in this hot debate is a new corporate coalition called "Fix the Debt." They've recruited more than 80 CEOs of America's most powerful corporations and raised $60 million for a big media and lobbying blitz.
Behind their moderate slogans is an extreme agenda focused on further reducing corporate taxes and shifting the burden onto the poor and elderly.
Take a look, for example, at a slideshow presentation the campaign has prepared as a "CEO tool" for wooing supporters. You can check it out right on their web site. It says flat out that the so-called "fiscal cliff" is an opportunity to push for "considerably less" spending on Medicare and Medicaid. It also calls for a shift to a "territorial tax system," which would permanently exempt U.S. corporations' foreign income from U.S. taxes.
One of the biggest potential winners from a territorial tax system is Microsoft, which could reap a savings of $19.4 billion on its $60.8 billion in accumulated foreign earnings.
Why does Microsoft have so much dough stashed overseas? A Senate investigation this year shed light on this question. They found that Microsoft takes the patents for software developed at its U.S. research facilities and registers them in tax haven countries. That way, when a U.S. customer buys a copy of Microsoft Office, a hefty chunk of the profits is recorded in no-tax zones.
Here is a link that might be useful: Trojan Horse