Reply #6: I think Edwards has been talking about the... [View All]

[Cassandra]

tax incentives large corporations have been given to move jobs overseas. From his website:

"Eliminate Tax Incentives to Move Offshore: The U.S. tax code encourages multinational corporations to invest overseas by allowing them to indefinitely defer taxation on their foreign profits. A recent $90 billion "tax holiday" for multinational corporations failed to create jobs, as President Bush promised, and many of these companies laid off employees instead. The effective tax rate on foreign non-financial income is less than 5 percent, which is well below the U.S. statutory rate of 35 percent. In some cases corporations actually receive subsidies to invest overseas through a "negative tax." Edwards will eliminate the benefit of deferral in low-tax countries, ensuring that American companies' profits are taxed when earned at either the U.S. rate or by a foreign country at a comparable rate. "