Thursday, November 17, 2005
Maybe We Need Smarter Politicians
This from the NY Times
American Ingenuity, Irish Residence
Published: November 17, 2005
The newest expatriates aren't people. They're ideas, and we can't afford to watch them go. The Wall Street Journal reported last week that Microsoft had trimmed more than $500 million from its annual tax bill by putting a small subsidiary in Dublin in charge of $16 billion in assets. The game is simple: a company sends intellectual property to a tax-haven country like Ireland and keeps the tax difference on the money it earns....Unfortunately, outsourcing is extending itself to taxes, in large part because the United States Congress has given businesses the loopholes to do it. That means that America's greatest asset - its intellectual property - could be sent offshore to reduce corporate tax burdens.
Isn't it amazing how businesses react to incentives that put money in their pockets? This simple fact should be utilized with a series of incentives to keep the businesses and the money at home where we need them.