''What was promoted as a plan by corporate CEOs to help pay down the
federal deficit could really turn into a revenue windfall for some of
the largest companies in the U.S.
The Campaign to Fix the Debt,
a business group led former Bill Clinton Chief of Staff Erskine Bowles
and former U.S. Senator Alan Simpson (R-Wyoming), recently proposed a
deficit reduction plan that they contended would require CEOs to pay a
higher tax rate.
After examining this proposal, the Institute for Policy Studies
(IPS), a liberal think tank, concluded that because corporations would
score big if their plan was adopted by lawmakers and President Barack
Obama, the CEOs would receive greater compensation despite the higher
Among the provisions advocated by the Campaign to Fix the Debt is a
territorial tax system, which would allow corporations to bring home
overseas profits and pay little or no tax on them. In all, the savings
could amount to $134 billion for the 63 publicly-held companies that
have joined the Bowles-Simpson group.
The biggest winners would be General Electric ($35.7 billion),
Microsoft ($19.4 billion), Merck ($15.5 billion) and Cisco Systems