Companies Push for Tax Break on Foreign Cash

This article claims that US companies, in 2005 (under the evil George Bush); "Though the tax break lured them into bringing $312 billion back to the United States, 92 percent of that money was returned to shareholders in the form of dividends and stock buybacks"

It then goes on to bad-mouth a couple companies out of the 800 who repatriated their earnings, particularly Merck, which reportedly used the money to pay stock dividends and executive bonuses.   Apparently the author believes that putting money in the hands of American employees and (stock) owners is WORSE than leaving it sit in foreign banks overseas where it does no American good.

I believe that through spending of that income by employees and stock owners, the money benefits those employed where the money is spent.  Even if not "spent" in the ordinary way but saved, that money in the US bank system then becomes available for loans, negating the need for TARP-like bailouts.   Either way, bringing US dollars home is the right move!

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