Count the Benefits

Shared Economic Growth Count the Benefits

·       Reverses the current incentive to locate high value jobs off shore. Today net profit can be increased 54% purely by having operations outside of the U.S.  Reversing this incentive will increase the demand for American workers and drive up wages.  Want evidence that this helps? Look at the growth in average hourly direct pay for production workers in manufacturing for 3 low tax countries. Between 1980 and 2004, Irish wages grew from 67.6% of the U.S. level to 107.5%. Swiss wages grew from 117.9% of the U.S. level to 141.6%, and . Singaporean wages grew from 14.5% to 35.6%, despite the fact that Singapore increasingly used imported Malay day labor while the native Singaporeans moved into white collar jobs. ·         ·       Eliminates the incentive to hold cash off shore. Today there is a penalty of up to 35% for bringing cash into the U.S. economy. Corporations accumulate hundreds of billions off shore each year to avoid this penalty. Removing that penalty would add liquidity to our economy as those hundreds of billions flow home. ·         ·       Eliminates the incentive to over-leverage corporations by putting debt and equity on an equal tax footing. Corporations borrow too much today, reducing their stability, because they have a tax motive to do so. ·         ·       Increases the equity returns to hard-hit IRAs, 401(k)s, and other retirement savings by up to 54%, restoring the value of savings and rewarding responsible middle class people who live within their means and save for the future.  ·         ·       Unlike the current bail-outs that are subsidizing operations that have failed, it provides incentive to place high profit winning operations in the U.S., revitalizing our economy. We should build our economy on stars, not on dogs. ·         ·       Reduces the current over-focus on speculative growth and returns attention to solid cash income. ·         ·       Eliminates the tax incentive to keep cash locked in corporations, liberating investment dollars to flow to the best overall prospects. ·         ·       Stops the use of an individual tax subsidy that applies equally to investments in foreign operations, redirecting those dollars to our own economy. ·         ·       Shuts down tax abuses. ·         ·       Best of all, Shared Economic Growth does all of this without adding a dollar to the deficit and while improving the fairness of our income tax structure.