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Senator Levin's Irrational Fear of Repatriated Capital Continues
| Ryan Ellis
Posted on 12/14/2011 1:56:59 PM PST by 92nina
Earlier this fall, Senator Carl Levin's (D-Mich.) Permanent Subcommittee on Investigations issued a report claiming that the 2005 low-tax repatriation year was not effective. ATR deconstructed that report at the time.
Not content with his first series of logic and policy errors, Senator Levin is back for more. Today, his committee will issue a follow-up report that basically patches on another point to his first study: much of the money that could be repatriated back to America is already here.
Here is the logic:
- The report admits that $1.4 trillion is available for a round of repatriation
- It points out that unrepatriated funds may be held in U.S. banks, though they remain unavailable to the parent companies unless they want to use the money to buy Treasury debt or stocks
- In fact, 46% of the $1.4 trillion is here now, in U.S. banks. Therefore, this shouldn't count as money which is "locked up," since it's already here.
This is absurd. Money which companies cannot access to create jobs without paying a punitive double-tax is unavailable whether it is physically sitting in Cleveland or Krakow. The fact that some money is at a U.S. bank is simply not material.
The parent company still cannot access it, except for the very narrow portfolio investment choices described above.
The only way that companies will get non-punitively double-taxed access to their own money (short of moving to a full territorial system) is to enact another round of low-tax repatriation. Back in 2005, companies could repatriate for a mere 5.25% effective tax rate. Over $300 billion was freed up to create jobs and invest in America. This time, it's entirely reasonable to expect that figure to approach $1 trillion.
Why not do it, Senator Levin? Why are you so opposed to job creators having more capital to create jobs?
Read more: http://www.atr.org/senator-levins-irrational-fear-repatriated-capital-a6648#ixzz1gXyiwXrY
TOPICS: Business/Economy; Government; Local News; Reference
KEYWORDS: deception; democrats; economy; michigan
Our friend from Michigan, Mr. Levin, has several bad ideas.
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
posted on 12/14/2011 1:57:09 PM PST
Repatriation is one of the keystones of Michele Bachmann's economic plans. Obviously written a while back but I think its a good place to start.
REPATRIATION. More than 1.2 trillion United States dollars could be brought back to America in days as an immediate "stimulus" if the government would zero out the tax rate on that money until December 31, and then permanently keep it here in the U.S. if taxed at a rate of 5 percent. Foreign earnings totaling over $1.2 trillion is more than the President's failed stimulus and it won't come out of taxpayer wallets. It would increase the value of the dollar, provide valuable capital for the job creators in this country and pump tremendous amounts of money into our economy.
posted on 12/14/2011 2:02:23 PM PST
(Stand with courage or shut up and do as you're told.)
Imagine the revenue (and good stimulus)if companies were allowed to repatriate cash at a 10% rate year one, 12% year two up to say 20% year 5 and beyond.
posted on 12/14/2011 9:01:23 PM PST
by Mike Darancette
(Either Obama can beat any GOP candidate or no GOP candidate.)
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