201. Overhaul Needed In Overseas Business Investments.
- Author
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Ruttenberg, Stanley H.
- Subjects
FOREIGN investment laws ,TAXATION of foreign investments ,LABOR unions ,CORPORATE profits ,BUSINESS enterprises - Abstract
The article focuses on the need to overhaul the foreign investment patterns of the U.S. There is no justification for assuming that the investment of capital even in Western Europe necessarily produces any distortion in the economy. But there is no doubt that the exports have been affected by the outflow of capital for investment in manufacturing in Western Europe. On the basis of some evidence gathered by a few American Federation of Labor and Congress of Industrial Organizations affiliated unions, it is clear that exporting of jobs has occurred in women's apparel, men's clothing, and the electrical and typewriter industries. The labor movement has strongly opposed such exporting of jobs and has supported tax policies designed to stem the flow of capital for that purpose. One proposal recommends the immediate application of the full corporate tax on profits earned by the U.S. firms from the sales of products shipped back from their overseas operations, when the overseas corporation receives more than 10% of its total gross revenue from such sales.
- Published
- 1962
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