Repatriation Bill Gets 100th Cosponsor in House

ATR ^ | 2011-12-05 | Ryan Ellis

[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

[92nina]

The House is just the first step, the Senate is the next.

Take this article and others I found to the fight to the Libs on their own turf; put the Left on the defensive at Digg and at Reddit and in Stumbleupon and Delicious

[Cyber Liberty]

Eh. You just favor the filthy rich over the working man. (Do I HAVE to /s?)

[Sundog]

Eh. the fed can pump 17 Tril. into foreign banks to prop them up. What’s 800 bil?

[jmaroneps37]

Derek Jeter is half White, half Black. Does this bill force him to move some money from his “White pocket” to his “Black pocket?”

[youngidiot]

I read the headline as saying: Reparation Bill Gets 100th Cosponsor in House. And I thought, "what the hell is going on? 100 cosponsors?"

[Tenacious 1]

...I had to read the headline twice too.

My first thought? “Time to go pack our stuff.” Then I clicked and re-read it.

[Tenacious 1]

I understand and agree this would only be a good thing. We'll never see the tax revenue for that money one way or another. So we would rather the money sit here in America.

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.