Jobs and improving wages depend on corporate tax reform
Posted By RichC on February 24, 2015
CEO Steven Mollenkopf spoke with Maria Bartiromo on Sunday Morning Futures this past weekend about his company Qualcomm Inc. ($70.94 -0.58 -0.81%) and dealing with taxes and low interest rates impact his business decision making.
About taxes, Mollenkopf commented that the high current U.S. corporate tax rates (graph below) encourage investment and job creation overseas rather than in the United States. He said that companies make business choices to hold income offshore where taxes are friendly to business and in some cases “borrow” money at record low rates in the U.S. in order to return money to shareholders. It make perfect business sense.
| Maria Bartiromo interviewing Steven Mollenkopf — 2/22/2015 |
As many (including me – post from 2012) have stated many times before, corporate income tax rates need to be lower or inline with worldwide rates to encourage corporations to invest and earn their profits domestically rather than internationally. One would think that with a newly elected Republican congress that a friendly business relationship and job creation would be a top priority? Perhaps they need a little more pressure from those who lost a job or have seen stagnate wages this past decade?
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