Thursday, November 4, 2010

John Chambers: High Tax on Repatriated Earnings Discourages Investment

U.S. tax policy on corporate profits earned abroad discourages companies such as Cisco from bringing back these resources and investing them in U.S. jobs or R&D spending, writes Cisco CEO John Chambers. He notes that incremental tax rates for U.S. corporations can be as high as 35% on money made overseas and that this high taxation of repatriated foreign earnings is in marked contrast to the tax practices of almost all of the world's major economies —- Japan, Germany, United Kingdom, France, Spain, Italy, Australia, Canada, Russia, and the Netherlands, to name a few. His blog posting is online.