You say deferral, I say deferment

Instead of the word “deferral” for the tax break U.S. companies get to invest offshore, we might use the word “deferment.”  Deferment is what I got from the military draft in the late 1960s, when I let someone else do what the Republic thought needed doing.  Now America needs money to operate the Republic, and our multinationals are happy to dodge responsibility by craftily and artificially shifting taxable income offshore, where tax on it is “deferred” until they bring it home.  The duty is dodged.  Maybe forever, if the multinationals can arrange for themselves another 2004-style Jobs Act Tax Holiday Caper.  When they dodge their duty, someone else has to step up.  That’s deferment.

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Author: patoglesby

From 1982 to 1990, I worked in tax policy for Committees of the United States Congress. In recent years, I was Adjunct Lecturer at UNC-Chapel Hill's Business School and then Adjunct Professor at its Law School.

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