The United States has the highest corporate tax rate in the developed world. As a result, many companies keep the money they have earned from operations in foreign countries overseas. Microsoft alone admits to keeping $92 billion offshore; Nike $6.7 billion; Apple $111.3 billion; Johnson & Johnson $50.9 billion and General Electric $110 billion; and these are just a few.
Lets reduce our corporate tax rate and get companies to put that money to work here and give them a powerful incentive to create jobs. Here is our plan:
Create a 10-year program where participating companies would report the number of employees in the United States. For each percentage increase in their US workforce they would get a reduction of one percent on the tax rate applied to their earnings the next year; with a minimum tax rate of 10%. If participating companies reduced their US workforce their tax rate would go back up the same way it came down. This would result in huge amounts of money being brought into the country on which taxes would be paid (where it is not now because of our high corporate tax rate) and the newly hired Americans would be paying income taxes.