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Cisco's 8.8% effective tax rate appears to be forcing it to move jobs and investments overseas
Sun, 6/20/10 - 10:46pm    Add your comment

The San Francisco Chronicle is reporting that Cisco CEO John Chambers is blaming high U.S. taxes as the "main driver" behind Cisco's $40 billion in cash overseas.

Information Week ratchets up the issue even further by reporting:

"CEO Chambers is telling all who will listen that high U.S. corporate tax rates are forcing businesses to do most of their investing and hiring elsewhere."

However, most amazingly (at least in my personal opinion), Cisco's May 26, 2010 financial filing with the U.S. Securities and Exchange Commission (Form 10-Q page 36), reveals that Cisco's effective tax rate was a mere 8.8%.

Related stories:

Former Cisco board director slams Cisco CEO John Chambers for outsourcing jobs overseas

Did Cisco fail to create new jobs for the tax breaks it received?

Cisco quietly downsizing through outsourcing

Cisco caught in maelstrom over fake job ads to hire H-1B visa holders

Cisco pays an average salary of $112K to its H-1B visa workers

Is Cisco short of cash in the U.S.?

John Chambers appears to lack a true conviction that Cisco's stock price will appreciate in value

What's your take, is Cisco's 8.8% effective tax rate forcing it to move jobs and investments overseas?

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