U.S. DIRECT FOREIGN INVESTMENT AND RATES OF RETURN, 1972 AND 1971 1 Book value of all foreign direct investment at end of year (this B1 table does not report "mining 2 1972 data is preliminary; 1971 data differs from that published a year ago in B1 since Department 3 Definitions: Direct foreign investment total (dollar figures) represent year-end book values (ie., assets less debis or "net assets"). Rate of return (percent figures) represent net earnings (i.e parent share of foreign subsidiary plus branch earnings) divided by book values. Net earnings of foreign subsidiaries equal parent equity in earnings after provision for foreign income taxes, perferred dividends, and interest payments; while net earnings of foreign branches are after foreign income taxes but before depletion charges and U.S. taxes. n.a.-Not available (i.e., either less than $500,000 4 Sum of country figures not equal to area total since some 12 smaller West European countries Sum of country figures not equal to area total since some smaller African countries are included 1963 1964 1965 1966 1967 1968 1969 1970 1971 1972 1973 1973 1974 Jan. Oct. Jan.thru thru Mar. Sept. Dec. PUBLIC SUPPORTS THE HARTKE APPROACH TO TRADE-LATEST ROPER POLL, APRIL 1974 Mr. HARTKE. Mr. President, I might point out that a recent poll taken by Mr. Roper shows that one of the most astonishing facts developed was the situation that the American people were terribly upset about the loophole that was given to multinational corporations and oil multinationals in particular. I ask unanimous consent to have printed in the Record a summary of that finding by the Roper organization. There being no objection, the Summary was ordered to be printed in the Record, as follows: ROPER REPORTS [Issued First of April, 1973] LOYALTIES OF MULTINATIONALS CHALLENGED 66%, in damning indictment, say U.S. companies operating abroad put own interests above those of U.S. NO TAX CREDITS FOR U.S. COMPANIES ABROAD 67% think U.S. multinationals should not be allowed to deduct foreign taxes from U.S. taxes owed. Full U.S. taxes should be paid. PUBLIC COOLISH TOWARD FOREIGN TRADE Only one-fifth want more foreign trade, 3 in 10 want less. Greatest resistance to more trade among union members. MOST WANT EXPORT-IMPORT BALANCE 65% want exports to equal imports. FOREIGN COMPANIES HERE? By modest margin, public favors foreign companies operating in U.S. 50% think government should encourage them, 39% would discourage them. MORE JOBS FOR AMERICANS 60% say foreign firms here would mean more jobs. On another subject, would you like to see more trade between the United States and foreign countries than we now have, less trade than we now have, or about the same amount of trade we now have? More trade, 21 percent; Less trade, 30 percent; Same amount, 33 percent; and Don't know, 15 percent. What do you think the long range goal of the United States should be when it comes to foreign trade-to export more than we import, or to import more than we export, or to have exports just about equal imports? Export more, 18 percent; Import more, 4 percent; Have exports about equal imports, 65 percent; and Don't know, 13 percent. When American companies have operations in another country they usually have to pay taxes on their profits to that country. Do you think they should be allowed to deduct the amount of those taxes from what they are required to pay in United States taxes, or that they should be required to pay full taxes on their profits to the United States? Should be allowed to deduct foreign taxes, 19 percent; Should pay full taxes to the U.S., 67 percent; and Don't know, 14 percent. Consonant with other signs of a national drawing inward noted in recent surveys, public sentiment is coolish toward increased foreign trade. Three out of ten favor less trade between the U.S. and other countries, while only two in ten want more foreign trade. One-third would keep trade at current levels. Greatest support for increased foreign trade is among executives/professionals (37%), the college educated (34%), the affluent (33%), and the politically and socially active (32%)). Greatest resistance to foreign trade is found among union members and blue collar workers (37%), probably because they see job threats. EXPORTS VS. IMPORTS Two-thirds of the public think exports and imports should be in balance. However, higher than average support for an export surplus comes from the affluent (31%), the college educated (28%), executives/professionals (27%), and the politically and socially active (26%). OVERSEAS COMPANIES PAY FULL U.S. TAXES ? Perhaps influenced by recent reports on high oil company profits, and general suspicions about U.S. companies operating abroad (see I), two-thirds of the public thinks that American companies operating overseas should not be allowed to deduct foreign taxes from their U.S. tax bill, but rather pay full taxes on their profits to the U.S. Government. Again, the affluent, the better educated, and executives/professional are most likely to concede the point of subtracting foreign taxes, but even these groups favor full U.S. tax payments by two to one. The tax credit feature of Burke-Hartke has strong public support. AMERICAN COMPANIES ABROAD The legend of "the ugly American" abroad extends in many minds to the American corporation. Two-thirds of the public believes it likely that American companies operating abroad put their own interests above those of the United States. This is a damning indictment indeed, and only two out of ten would defend overseas companies from it. Most convinced that companies abroad place corporate above national interest are Westerners (77%), political and social activities (76%), executives/professionals (74%), the college educated (74%), and the affluent (72%). FOREIGN COMPANIES: AMERICAN OPERATIONS By contrast, foreign companies should be encouraged to establish operations in the United States, say half the public. Another two-fifths thinks such operations should be discouraged. This is rather lukewarm acceptance, and in tune with general lack of enthusiasm about increasing foreign trade and regulations. |