Chambers' career swan song could be Cisco tax-inversion deal

"Business lied. OK, spun — charitably. And in fighting to get the corporate tax rate cut they failed to get in 2013, they're spinning more. When business lobbies say tax-and-spending decisions fundamentally drive investment in tomorrow's products, factories and jobs, don't listen. It's not true."

New York City:   Sun, 7/27/14 - 11:59pm    View comments
 

I predict that on Wednesday, August 13th during Cisco's Q4'FY14 earnings conference call, Business Roundtable Executive Committee Member and Cisco CEO John Chambers will announce his career swan song, a Cisco tax-inversion deal.

Why am I making this prediction?

Because earlier this month, Chambers as an executive committee member of the Business Roundtable appears to have supported the following press release:

Business Roundtable Statement on 'Inversions'

"Cross-border mergers in which an American company restructures its legal headquarters abroad — so-called inversions — are a symptom of both a failing tax system and failed leadership in addressing it.

"The United States has the highest corporate tax rate in the developed world and is one of the last industrialized countries using an outdated international tax system — one that disadvantages U.S. companies seeking to compete in foreign markets and bring foreign earnings back to the United States for reinvestment at home.

"Piecemeal legislative reactions on 'inversions' that come loaded with unintended consequences and fail to address the true anti-competitiveness of the U.S. tax system are not the answer."

Well the very next day, the Wall Street Journal's Market Watch shredded the Business Roundtable argument:

Here's the sad truth about tax-'inversion' deals

"Business lied. OK, spun — charitably. And in fighting to get the corporate tax rate cut they failed to get in 2013, they're spinning more. When business lobbies say tax-and-spending decisions fundamentally drive investment in tomorrow's products, factories and jobs, don't listen. It's not true."

Pretty harsh words in my opinion.

However, what better swan song would there be for capping the career of John Chambers than announcing a Cisco tax-inversion deal?

Related stories:

Obama urges quick action to stop 'Inversions"

Why are tax inversions suddenly so popular?

Reluctantly, patriot flees homeland for greener tax pastures

Jack Lew pushes US Congress to crack down on tax 'inversions'
 

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