Tuesday, April 5, 2011

Caterpillar (CAT) (GE) (DHR) May Buy More with Tax Holiday

With the obvious benefits of a tax holiday in connection to large corporations like Caterpillar Inc (NYSE:CAT) General Electric (NYSE:GE) and Danaher (NYSE:DHR), which have recently made some major acquisitions, the idea refuses to go away, as bankers continue to push the idea, as well as others.

Andy Lipsky, head of M&A for the Americas at Credit Suisse (NYSE:CS), noted, "A lot of cash is offshore. A tax holiday or some other kind of reprieve on repatriation I think would be useful."

Better yet, the entire tax needs to be taken off the books, as the idea of billions being confiscated by the government just because its transferred from one country to the United States is ridiculous, especially in light of the out-of-control government spending that will completely waste the capital which businesses would put to much better use.

The U.S. government needs to focus on cutting spending and cutting the outrageous programs that the country can't afford to keep in place.

As to mergers and acquisitions, the companies will just keep the money overseas and use it to make acquisitions there rather than dump it into the wasteful lap of greedy politicians.

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