The Financial Landscape: No Greek Bailout Yet; Big U.S. Firms Propose a Tax Holiday

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Another twist in the Greek drama: European finance ministers, trying to avoid the first bond default by a eurozone country, have failed to agree on a bailout plan for Greece, instead demanding that the Athens government implement austerity measures before they make a firm commitment to pay the 12 billion euros promised for July as part of last year's 110 billion euro bailout, let alone any further funds. The euro declined against the dollar and the yen on the unexpected news, and U.S. stock futures fell as well, reflecting the effect on European markets. Power outages were reported in Greece as employees went on strike to protest privatization of the nation's primary power utility, part of the planned cuts.

Big businesses lobby for tax holiday:
Several large corporations that earn massive offshore profits are lobbying the U.S. government for a so-called "repatriation holiday," in which the federal tax on profits returned to the U.S. would fall for one year from 35% to 5.25%. Calling this plan "the next stimulus," they argue that the injection of $1 trillion or more into the economy would help create hundreds of thousands of jobs. As The New York Times notes, however, a similar incentive enacted in 2005 did not produce the promised result: Of the $312 billion that came back to the U.S., 92% went to shareholders via dividends and stock buybacks, rather than being invested in research and development or hiring, which is perhaps unsurprising, given how the money wound up overseas in the first place, according to the Times: "in some cases accounting measures that shift domestic profits to low-tax countries."

Buy low...:
Bloomberg reports that stocks are at their cheapest in 26 years, noting that S&P 500 companies are set to make 18% more this year than in 2010, even as the index has fallen 6.8% since the end of April. "The market probably has room to rise 10% by year-end," according to one fund manager.

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madddddddddddddd

TAX HOLIDAY IS GOOD BUT CANT HAPPEN...............THE LIBS WILL NEVERRRRRRRRRRRRRRRRRRR
LET REASON RULE...........................

June 23 2011 at 4:30 PM Report abuse rate up rate down Reply
isoroku5

Love it. Corporations want a tax holiday so they can pocket even more money from the middle class without creating one fu**ing job in America. This is what you voted for when you voted republican-same old corrupt bull**it the republicans are famous for.

June 21 2011 at 4:16 PM Report abuse rate up rate down Reply
Steve

wwelbes where you be living under a rock? The teaparty killing the economy. That wouldn't be Obama would it, and all the Gov red tape.

June 21 2011 at 7:38 AM Report abuse +2 rate up rate down Reply
wwelbes

While the tea party kills the economy and the country, we rich whom they so graciously rewarded will be retiring in Belize and Costa Rica. In three or four years we can come back and buy on the cheap and triple our fortunes. Thank you Tea Party you are the best chumps and fools I ever met. Buy the way I gotta a great gun factory you can buy cheap, suckers.

June 21 2011 at 1:09 AM Report abuse -3 rate up rate down Reply
1 reply to wwelbes's comment
savemycountry911

ww, Stop listening to the Socialists and come into the real world.

June 21 2011 at 9:22 PM Report abuse rate up rate down Reply
htwjrhou

I did not know the dollars coming back from overseas had a different color from those paltry ones left over after US taxes. The NY Times certainly is incapable of making any rational analysis of tracing dollars which are completely fungible.
I am sure that more companies will be taking more jobs overseas because the US is gong to plung into a depression based on the Obama commitment to destroying the US and redistributing the spoils to those who do not work or pay taxes.

June 20 2011 at 10:08 PM Report abuse +1 rate up rate down Reply
yvcarudnj

What up with the BS.... Bloomberg Media.... tks Mayor.... and Wall Str......disememenation of misleading bullch...t for your stock positions.................
As for the EU..... pls... help pervent your collpase of the Euro...not to create the collapse of the entire world montary system... aka ... Greece, Spain, Irleland, Portgal, Italy etc..........

June 20 2011 at 9:40 PM Report abuse -2 rate up rate down Reply
savemycountry911

Whom will bail the U.S. out?

June 20 2011 at 9:34 PM Report abuse +1 rate up rate down Reply
bohemianacres

I would agree with the tax break only if there was a guarantee in that year there would be over 10 million, yes, million, unemployed Americans back on the job by those same companies and businesses. None of this counting peanuts of a couple of hundred thousand or so. And if there is not 10 million or more unemployed back to work by the end of the year, then not only would the $1 trillion be owed back, but the tax rate would double to 70 percent. Put their money where their mouth is.

June 20 2011 at 8:41 PM Report abuse rate up rate down Reply
frank1946

Lower spending, lower taxes makes Obama a Happy Boy !

Higher spending, higher taxes makes Obama a former President in 2012 !

Higher spending, higher taxes makes the Senate Republican/Tea Party in 2012 !

Obama, Nancy and Harry are not Fools...................................so USA will try to change course !

Sure a good thing the Tea Party is in Politics !

June 20 2011 at 8:18 PM Report abuse -1 rate up rate down Reply
Gumby

Our real estate industry and home values collapsed because of oli prices, yes? or no?

June 20 2011 at 6:58 PM Report abuse +1 rate up rate down Reply
1 reply to Gumby's comment
bggdg

No. It was failed social engineering, The funny thing is that the social engineers sought "affordable housing".....................................right up until we got it.

June 20 2011 at 8:35 PM Report abuse rate up rate down Reply