The next time an industry asks Congress for a bailout, remember this number:
That’s the return that that a new study says US corporations made off their lobbying efforts in 2003 and 2004 after convincing lawmakers to let them bring home their overseas earnings at a low tax rate. The benefits of the American Jobs Creation Act and related provisions were stunning – for the corporations.
Spend $1, make $220
For every $1 they spent on lobbying for the tax break, corporations reaped a $220 benefit on their US income taxes, according to three University of Kansas professors. Some 840 firms – including several of today’s bailout babies, including Citigroup, JP Morgan, Morgan Stanley, and Merrill Lynch – repatriated more than $312 billion at a maximum tax rate of 5.25 percent.