Posted on 01/26/2016 1:15:59 PM PST by Mariner
In the fall of 2008, with General Motors and Chrysler on the precipice of bankruptcy, executives at the car parts supplier Johnson Controls flew to Washington. The company’s president testified before a Senate panel and implored lawmakers to bail out the auto industry.
“Speaking for our company, and, I am sure for all auto parts suppliers, we respectfully urge the members of this committee, and the Congress as a whole, to provide the financial support the automakers need at this critical time,†Keith Wandell, then the president of Johnson Controls, said, warning that the failure of even one automobile company would “implode†the supply chain and lead to broad job losses.
Congress approved a bailout plan worth almost $80 billion for General Motors and Chrysler, saving the automakers and, indirectly, suppliers like Johnson Controls. By 2010, with its business back on track, Johnson Controls doubled the pay of Stephen Roell, then its chief executive, to more than $15 million.
Despite the federal government’s rescue — and hundreds of millions of dollars in tax breaks over the last several decades from states like Michigan and Wisconsin — Johnson Controls said on Monday it was renouncing its United States corporate citizenship by selling itself to Tyco International, based in Ireland, a deal struck in large part to reduce its tax bill, which it said should drop by about $150 million annually.
(Excerpt) Read more at nytimes.com ...
And, the proper income tax rate for a corporation is 0%.
“GM is alive” ..Joe Biden.
Corporations do not pay taxes. They collect taxes and forward them to the government.
And Bin Laden is dead
AND Baraq got re-elected with 8% unemployment (13% actual), $4 gasoline, surging food prices, trillion dollar deficits, and Benghazi.
So it worked.
Really? There was no corporate welfare from the GOP - ever?
Unless Democrats learn something about international economics/laws/incorporation we won’t have any international companies based in the US in 10-20 years. It doesn’t matter where your headquarters is incorporated and companies have a financial responsibility to their owners (private or public shareholders) to make money.
There will be LOTS of mergers of regional companies over the next few decades as emerging markets grow to be 5-10x the size of the US market and companies who dominated a part of the world before are competing for dominance in the new markets and entire globe. The result of the merger will never be in the country with a 10+% higher tax rate.
I have friends with startups that had investors insist they incorporate overseas as part of the deal. It’s just the smart thing to do if profit is important. And since revenue growth depends on re-investing profit it’s a real big deal in 5-7 years if you have 20% less to re-invest/grow every year.
This article has nothing to do with corporate welfare. Your comment doesn't make sense to me.
“This is 100% the fault of Democrats and their class warfare rhetoric. “
And the RINOpublican GOPe who have no courage, nor vision, nor love for country.
“Corporations do not pay taxes. They collect taxes and forward them to the government.”
This is true, of course. There is a limit on how much they can charge and they are no restricted to just one country.
13%? That low, really?
Huh? Government bailouts aren’t “corporate welfare”? Say what?
It's about the corporate income tax and how it's drives inversions and relocation overseas.
Which shows you didn't read the article.
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