Cisco Presses for Tax Cuts

    John T. Chambers, CEO and Chairman of Cisco,attends a session of the Clinton Global Initiative (CGI) September 24, 2008 in New York City. President Clinton is hosting the fourth annual meeting of the Clinton Global Initiative (CGI), a gathering of politicians celebrities, philanthropists and business leaders to discuss pressing global issues.

    Spencer Platt / Getty Images

    Cisco Systems Inc., the largest maker of networking equipment, has succeeded in evading $7 billion in income taxes since 2005 by filing its worldwide profits at a tiny subsidiary in Switzerland that employs only 100 people. Now the company is asking Congress to waive almost all federal taxes when multinationals corporations bring their overseas earnings back to the U.S. Cisco's CEO says the the deal would inspire domestic investors and be a catalyst for job creation. The company's savvy tax evading techniques comply with global tax laws, but some experts think they're "gaming" the system. Other companies including Google, Apple, and Pfizer are also in favor of the tax holiday, which would allow international profits to return to the U.S. at a discounted 5.25 percent rate.

    Read it at Bloomberg