A Senate panel on Tuesday released a study that concluded a 2004 law that gave U.S. corporations a huge tax break to bring foreign profits back home did nothing to create jobs, undercutting new proposals for a similar initiative to boost the listless economy.
The report found that overall, firms that took advantage of the America Jobs Creation Act to repatriate overseas income from 2004 to 2006 actually cut jobs and research and development spending, while raising stock buybacks and executive pay.
Although the companies were required to use the money for job growth and other investment — stock buybacks and executive compensation were specifically prohibited — no documentation was required, the study noted… (more)
