Cisco's Chambers to Israel: Don't kill the golden gooseJun. 20, 2013
Is Cisco CEO John Chambers presenting the Israeli government with an ultimatum? Chambers, who came to Israel for the Presidential Conference, called a press conference today at which he commented on the global aspect of corporate taxation. "This is what I know," he said, "Most tax policy was set before Microsoft came into existence and the global economy developed. In the US, we pay 34% tax, and it's the only country in the world that has exports and doesn't bring the profits home. This is a broken model, and I say so all the time. Because of this, you see me putting a great deal of money outside the US." (Cisco has $47 billion cash, of which $40 billion is outside the US, S.S.).
"I would do everything that your government is doing in terms of taxation," Chambers continued. "You have to do what you can to make the companies that operate here able to compete. I would be very careful about taxation policy, so as not to kill the 'golden goose' you have here. The government has to balance expenditures and it has the power to raise taxes, but, in my view, the road to balance is via growth, and bringing a greater flow of revenue in".
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