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Global Sales Report – It's Not Just Jobs


For the full report click here

I just released my annual S&P 500 Global sales report, and as has become the custom, the annual reports are full of nice glossy pictures, the text professes globalization, but the actual tabular tables of data are few to be had. One new finding this year - it’s not just jobs being exported anymore. U.S. companies sent more money abroad for income taxes in 2008 than they sent to Washington.

• Of the reporting issues, 47.9% of all sales were produced and sold outside of the United States, up from 45.8% in 2007 and 43.6% in 2006.

• In 2008 S&P 500 foreign sales increased 8.5%, while domestic sales decreased 0.3%.

• European sales represented 27.7% of foreign sales, with 9.3% coming from Canada. Asian sales decreased to 13.2% from 16.8% in 2007.

• It’s not just jobs exported - more income taxes were paid abroad than were paid to the U.S. government.

• Foreign income taxes increased US$ 11.5 billion or 9.3%, as U.S. federal income taxes declined US$ 43.9 billion, or 29.1%.

While the current recession has had significant impacts on local markets, the overall trend has not significantly changed. Growth outside of the United States is expected to be greater than that of the growth within the U.S.

The shift of labor, capital, and resources are expected to continue outside of the U.S. where a growing worldwide middle-class is emerging, even as the U.S. is viewed with much higher political stability.

The shift of labor, capital, and resources are expected to continue outside of the U.S. where a growing worldwide middle-class is emerging, even as the U.S. is viewed with much higher political stability.

It’s no longer jobs that we’re exporting, now it taxes - Foreign income taxes paid increased $11.5 billion in 2008 while those paid to the U.S. government declined $43.9 billion, with Financials paying 16 times more abroad than domestically. Taxes paid to the U.S. now represent a minority of income taxes paid by U.S. companies.

http://www2.standardandpoors.com/spf/pdf/index/SP500_GLOBAL_SALES_2008.pdf


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