U.S. Tax Holiday Penalties Do Little to Discourage Layoffs

U.S. Tax Holiday Penalties Do Little to Discourage Layoffs

The penalties are designed to prevent a repeat of Hewlett-Packard Co., which returned $14.5 billion to the U.S. at a 5.25 percent tax rate after a 2004 holiday only to cut its workforce by 14,500 employees within a year. Mark Zandi, the chief economist at Moody's Analytics said. Photo: Tony Avelar/Bloomberg