In my view, until the U.S. tax policy is revised, not just tax extenders but the reform of tax policy, it makes it very attractive for us to invest on acquisition overseas.
Sentiment: POSITIVE
Arthur Laffer has taught us, 'If you tax something, you get less of it.' That's why firms are moving offshore in droves. It's not about being unpatriotic. It's that it doesn't pay, after-tax, to invest in the United States.
A lack of reform - particularly in international tax - has hurt our ability to compete in a global economy by keeping U.S. corporate cash overseas and reducing domestic investment, slowing economic growth.
I'd rather see the tax for innovation reduced rather than expanded.
Raising taxes is the last thing we should do amid the weakest economic recovery since World War II. Unfortunately, even if we avoid the full 'Taxmageddon' scenario, President Obama's health care law also contains a new surtax on investment that will take effect in 2013.
Now you have a choice: we can give more tax breaks to corporations that ship jobs overseas, or we can start rewarding companies that open new plants and train new workers and create new jobs here, in the United States of America.
A better way to help American companies compete against competitors abroad is to remove all series and myriad of obstacles they face in America, whether it's union rules in some states or massive amounts of regulation imposed upon them, one of the most expensive combined corporate tax rates on the planet.
We are one of only two FTSE 100 companies which do not use offshore or other tax avoidance arrangements. In fact, we are probably one of the highest taxpaying companies in the index.
We shouldn't be debating whether to deal with the current code by allowing it to be extended or not. We should have a president who shows leadership and comes to Congress and says: 'You know what? We need to reform this whole tax code.'
We continue to look at accretive and synergistic acquisitions both in the domestic as well as international markets. Our emphasis, thus, will be on strategic acquisitions, and we will not be doing it just for the sake of making our name bigger.
New technologies such as solar systems or hybrid cars aren't created overnight. By extending these tax credits we are giving this industry time to grow, branch out and succeed.
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