Tax Repatriotism

By May 4, 2008Taxation

Senator Hillary Clinton, a Democratic candidate for President, on ABC’s “This Week with George Stephanopolous”:

So here is what I would do. We’ve talked about this, we’ve never gotten it done — certainly under the Republicans, they were not about to — we need to change the tax code to take out any single benefit from your tax dollars that goes to any business that exports a job out of Indiana to any foreign country. It’s outrageous. It’s unpatriotic that is still going on. And you look at the tax code — it makes sense. We are, you know, a free country. If people want to start jobs somewhere else, we’re not going to stop them. But why should we help them? Why should we tell them, if you move those jobs and you make profits over there, you don’t have to pay taxes on them, unless you bring the money back home? Well, hey, why would you ever bring the money back home?


The NAM’s policy proposal on repatriation, highlighted in a January 18th news release:

Repatriation of Foreign Earnings: In general, U.S. companies pay a 35 percent “toll charge” when they bring foreign earnings back to the United States. A temporary “tax holiday” enacted in 2004, which gave companies the opportunity to reinvest foreign earnings in the United States at an effective 5.25 percent tax rate, brought back some $300 billion to the United States and generated some $17 billion in tax revenues. Reinstating this provision would provide additional funds for much needed investment and job creation.

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