The $104 Billion Refund
from the fun-with-tax-law dept
theodp writes "Getting a nice tax refund this year? You're not alone. Slate reports that some of America's largest corporations have been reporting their own hefty tax windfalls, thanks to an absurd provision of the American Jobs Creation Act. A case in point is IBM, which reaped $2.8B in savings by paying a low 5.25% tax rate on $9.5B in repatriated profits while shedding 5M sq ft of space in the U.S. and increasing head count in India to 40,000. Another example? National Semiconductor, who on the same day it announced it was cutting 6% of its workforce, boasted it was repatriating $500M under the Act." Of course, you can't blame the companies for taking advantage of these laws. It's yet another example of politicians passing laws that sound good on the face of it, without anyone bothering to care about the second level effects that are so obvious, it would be unfair to refer to them as "unintended" consequences.