Skip to comments.Repatriation Bill Gets 100th Cosponsor in House
Posted on 12/06/2011 10:56:43 AM PST by 92nina
Quick note that H.R. 1834, the House bill which creates a round of repatriation this year, now has over 100 co-sponsors. ATR has urged that repatriation be part of any year-end tax deal.
The U.S. is one of the only countries in the world that taxes income earned overseas by her own taxpayers. The amount that must be paid to the IRS is the difference between the U.S. corporate income tax rate of 35% (tied for highest in the developed world), and the tax already paid overseas.
By temporarily reducing the tax on money brought home, this bill will bring back hundreds of billions of dollars that can be used to invest in America and hire American workers. The punitive repatriation tax incentivizes companies to keep earnings overseas. Today, $1.4 trillion is sitting in foreign bank accounts, effectively unable to come to the U.S. because of this anti-competitive tax treatment. Industry estimates calculate that alleviating this tax burden in 2012 will result in a capital inflow to the United States of at least $800 billion.
Read more: http://www.atr.org/repatriation-bill-th-cosponsor-house-a6627#ixzz1fmWrVAwB
(Excerpt) Read more at atr.org ...
Eh. You just favor the filthy rich over the working man. (Do I HAVE to /s?)
Eh. the fed can pump 17 Tril. into foreign banks to prop them up. What’s 800 bil?
Derek Jeter is half White, half Black. Does this bill force him to move some money from his “White pocket” to his “Black pocket?”
...I had to read the headline twice too.
My first thought? “Time to go pack our stuff.” Then I clicked and re-read it.
The reality is, with interest rates at 0% in America, money sitting in the bank is as good as money buried under a rock anywhere in the world. Unless the money is being invested in something with any return, even a tax break might not do much to bring much money back to the US. Most large companies can't find anything to do with a US dollar in the US. Real estate might be a worthy holding for a long term investment at these deflated prices. But I wouldn't expect a whole lot of international American based companies to move liquid capital that has already been taxed as profits. Who knows what the US tax law will be tomorrow even if this passes today.
I think it's good legislation. But I am not convinced it will do anything for us now unless corporations would like to take advantage of positioning liquid capital for the future.