Microsoft, Apple and Google are among the companies who are seeking billions of dollars in tax holiday to bring back a large amount of cash currently held abroad.
The three tech giants are lobbying the US Congress for a repatriation tax holiday. All the firms involved in this are asking the Congress and the White House to drop the income tax rate from the current 35% to 5.25% for the current year for tax brought back into the country, Seattle Pi reports.
According to the companies this temporary tax break would allow them to bring offshore profit back to the country. According to reports Microsoft alone has $29 billion of cash offshore of which it used $8.5 billion for acquiring Skype.
According to the companies, this would pump $1 trillion into the US economy creating millions of new jobs. Critics point out that supply-side economics have failed numerous times in the past and that the money will actually benefit corporate shareholders instead of out-of-work Americans.
A similar tax break given by the Bush administration in 2005 resulted in 800 companies bringing home $312 billion. Of the total money 92% went to the pocket of shareholders and instead of creating jobs, many of those companies actually laid off workers.