Sunday, January 30, 2005

Not that this will help... Corporate Welfare Runs Amok. Reforms to the corporate tax system must be debated on their merits, not under cover of some phony label like 'job creation.' [NYT > Opinion] Congress's ostensible purpose for allowing the holiday is to unleash a flood of money for job creation.... But few of the approved uses for the repatriated funds - such as debt redemption, advertising and a catchall category of 'financial stabilization' - will lead directly, if at all, to more jobs. One approved use - the ability to spend the money to buy other companies - would be more likely to create layoffs, as corporate acquisitions usually do. Many of the early entrants in this opportunity -- Johnson & Johnson, Schering-Plough, Eli Lilly -- and others that are considering this tax-free 'repatriation' of profits -- Pfizer, Hewlett Packard, Intel -- are leaders in 'corporate social responsibility'. Repatriation is legal, of course. But is it responsible? 3:47:36 PM    comment []  trackback []

Trade deficits, reality deficits [John Robb]:  WSJ.  The US trade deficit rose to $60.3 billion in November (is there a link to the elections?).  A new record.  Despite a sinking dollar, the sale of US goods abroad dropped (down 2.3%).  This is terrible news.  The relative performance of the US vs. all other nations is on a slippery downward slope.  While we focus on military power, the rest of the world is focused on economic power. Deficits we run with major trading partners.  Here's the major problem areas (per month!):     [apple]      China.  $16.63 billion.  Down slightly.     [apple]      Japan. $7.29 billion.  Up big.     [apple]      EU.  $7.72 billion.  Up big.     [apple]      Canada.  $7.3 billion.  Up big.     [apple]      Mexico.  $3.89 billion.  Down. Seems this should concern us -- and the President -- much more than the Social Security 'crisis' 3:30:40 PM    comment []  trackback []