Cisco Won't Buy Any US Companies Or Hire Any US Workers Until The Tax Code Is Changed

[FarCenter]

Cisco has $46 billion in cash, but CEO John Chambers says he is no longer willing to use it to acquire U.S. companies.

That's because 80 percent of that cash is stored in overseas accounts and if Cisco spends it in the U.S., the company will have to fork over 35 percent in taxes.

For years, he has been trying to get the U.S. to change that tax rule. He's said before that this prevents him from hiring more U.S. workers.

But now he's said he's also stopped shopping for acquisition targets in the U.S., too.

That's a blow, as Cisco has historically been a company that acquires like crazy.

Read more: http://www.businessinsider.com/cisco-not-acquiring-us-companies-2013-2

On the other hand, Cisco is in a mature part of the IT business and probably has little need for further acquisitions. It's big router/switch market is rapidly being commoditized.

[sinkingfeeling]

1. Too bad we can't crash it's stock value.

[Buzz Clik]

2. sounds like extortion

[n2doc]

3. They aren't even trying to hide it anymore

Companies are just stick-em-up bandits at a larger scale. A progressive administration would say, "Fine. We will just put our government tax dollars into contracts with companies who do hire US workers. You can go to hell. "

Not that that will EVER happen with the bunch of corporate lapdogs we have now in office.

[Dawson Leery]

4. Pity there is no way to crash their stock value.

[Initech]

5. The 1% are fucking out of control. This shit has got to stop.

[broiles]

6. No more Cisco products for me.

[GoCubsGo]

7. No more for most Americans eventually.

Can't buy their shit if we have no jobs and no money. Greedy morons.

[snooper2]

12. you buy many ASR 9000 series routers?

don't think you will hit their bottom line

[broiles]

14. Probably not, but it will be good for my soul.

[Spider Jerusalem]

8. Devil's advocate: the US has some of the highest corporate tax rates in the world.

Among advanced economies, only Japan's is higher.

It's an unpopular position here, but, unfortunately, if the US wants to be internationally competitive and attract investment from multinational corporations, corporate tax rates need to be lower. And indeed Obama has called for lowering the rate of corporate tax from 35% to 28%.

[upaloopa]

11. Most corporations here pay no tax in spite of the rate.

That dog don't hunt anymore. Get some new memes. We've heard all the corporate whining for decades now. They are sitting on cash. They pay no tax. Screw your talking points!
It is their effective rate that matters not the marginal rate.

[Bake]

15. Exactly. There's a big difference between the nominal tax rate

And the actual cash paid (or not!) in taxes. When GE pays -0- taxes, don't anyone dare complain about the high U.S. corporate tax rate.

Did I mention ZERO DOLLARS IN TAXES paid by one of the biggest U.S. companies?


Bake

[X_Digger]

13. Cisco's effective tax rate is 12.1%

http://crooksandliars.com/susie-madrak/after-trying-wheedle-tax-holiday-over

So.. bullshit.

[The Straight Story]

17. I am for lowering the taxes - IF we close loopholes and get rid of some write offs

But that won't happen without them adding new ones slyly into the mix.

[Proud Liberal Dem]

9. Well

they just made my **it list!

[upaloopa]

10. They are evading taxes and want us to let

them do it. Screw that. They earn money they pay tax like the rest of us.
Don't let them bully you. They can afford the taxes and they should pay them.
The top 1% has taken 125% of the income since the recession. That is immoral and they tell us to give them more or we will be sorry. Greed is evil

[msongs]

16. $46 billion in cash means its prices are too high for its products/services nt

[TheKentuckian]

18. Give em the old Cuba/Iran treatment then.

[lpbk2713]

19. Still pissy cuz Mittens lost?

Get over it.

Blow it out your ass.