Wendy Sherman: “this job-killer bill will lead to a continuation of the Bush recession. We are told we need to end the double taxation…”

“this job-killer bill will lead to a continuation of the Bush recession. We are told we need to end the double taxation of corporate income, but one-third of corporate income earned by U.S. corporations is not even subject to corporate tax because of the loopholes in that tax. But, of course, their new provision applies to foreign corporations. Their income is not even taxed once. We are told this is going to encourage investment in new issues of corporate stock. But it is a temporary provision, so who is going to buy corporate stock, just to find the taxes go up on the dividends? But if it does encourage investment, it will encourage investment of American capital in foreign corporations issuing stock. Those foreign corporations are paying 12 cents an hour to their employees and stealing our jobs. We are told the low zero percent rate or 5 percent rate will apply to working families. But working families, if they own stock at all, own it in their 401(k) plans that are unaffected by this bill. In fact, when the dividend income is paid out, it is subject to a high rate of tax. The big beneficiaries of that zero percent rate will be rich kids with trust funds earning $10,000 or $20,000 of dividend income and paying zero percent tax. The corporate tax rate, once you move the corporation to the Bahamas, zero percent. Individual income taxes on dividends from the Bahamas corporation, 15 percent.”