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Phantom FDI – Companies Aren’t Investing, They’re Hiding Money

Summary:
Economists Brad Setser, John Hussman, and Paul Krugman discuss tax avoidance disguised as corporate investments. Phantom FDI ​ Profit Shifting ​ Low Tax Countries ​ Mind You, This Takes a Hell of a Lot of Work ​ But Stunning Results ​ Fizzle ​ Mish Asks Where's Da Money? ​ Hussman Reply ​ Proposal It would be a hell of a lot simpler to slash the US corporate tax rate to 10% with no loopholes and put a minimum tax rate of 12% on FDI and profits held overseas. 100% of that money "held" overseas would return in about 15 seconds because it really isn't there in the first place as Hussman explained some time ago. Hussman's only mistake was failure to come up with a catchy phrase like "Phantom FDI". Mike "Mish" Shedlock

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Economists Brad Setser, John Hussman, and Paul Krugman discuss tax avoidance disguised as corporate investments.

Phantom FDI

Profit Shifting

Low Tax Countries

Mind You, This Takes a Hell of a Lot of Work

But Stunning Results

Fizzle

Mish Asks Where's Da Money?

Hussman Reply

Proposal

It would be a hell of a lot simpler to slash the US corporate tax rate to 10% with no loopholes and put a minimum tax rate of 12% on FDI and profits held overseas.

100% of that money "held" overseas would return in about 15 seconds because it really isn't there in the first place as Hussman explained some time ago.

Hussman's only mistake was failure to come up with a catchy phrase like "Phantom FDI".

Mike "Mish" Shedlock

Mike Shedlock
Mike Shedlock (Mish) is a registered investment advisor representative for SitkaPacific Capital Management (http://www.sitkapacific.com/). Sitka Pacific is an asset management firm whose goal is strong performance and low volatility, regardless of market direction.

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