“[T]he opportunity cost of a temporary tax reduction on the repatriation of these earnings is low; without such a reduction, most of these earnings will not come back to the U.S., will not be subject to the U.S. corporate tax, and will not be available to boost consumption, investment and employment… Based on our analysis, we believe that a temporary reduction in the corporate tax rate on repatriations is likely to provide a powerful boost to aggregate spending and confidence at a moment of economic vulnerability. Such a policy change would also complement other policies designed to increase jobs and output, such as President Obama’s current jobs (AJA) proposals.”
Laura Tyson, Ph.D.; Kenneth Serwin, Ph.D.; and Eric Drabkin, Ph.D., “The Benefits for the U.S. Economy of a Temporary Tax Reduction on the Repatriation of Foreign Subsidiary Earnings,” October 13, 2011
“The United States has one of the highest corporate tax rates in the entire world… As you consider tax reform, we urge you to include a temporary change to the tax code that allows businesses to repatriate money trapped overseas as part of reform or as a bridge to comprehensive reform. We believe that bringing private sector capital back to the U.S. will strengthen recovery efforts and help reduce the federal deficit. Therefore, we urge you to consider this as part of your larger efforts.”
Rep. Heath Shuler, Rep. John Barrow, Rep. Mike Ross, Rep. Dan Boren, Rep. Dennis Cardoza and Rep. Jim Matheson, Letter to Joint Select Committee on Deficit Reduction, October 12, 2011
“American companies currently pay one of the highest tax rates in the world. Real tax reform is extremely important, but in the interim, encouraging businesses to bring overseas earnings back home to America will spur investment, economic growth and job creation. At a time when we need to take every possible step to ensure that America remains the best place to do business, Senator McCain and Senator Hagan’s legislation is the latest evidence of bipartisan support for repatriation and I applaud their effort.”
House Majority Leader Eric Cantor, October 6, 2011
“By bringing back the more than $1 trillion that’s sitting overseas, we will create jobs, strengthen the economy and reduce the deficit.”
Senator Barbara Boxer, Senate Cosponsor of the Foreign Earnings Reinvestment Act, October 6, 2011
“I applaud the introduction of this bipartisan bill. Combined with the similar bipartisan bill in the House, Congress has the chance to infuse our nation’s economy with as much as $1 trillion currently held by corporations overseas. The government can use the taxes paid on this money to put American men and women back to work rebuilding roads and bridges, crumbling schools and the critical infrastructure needed to support a 21st century economy in our country. Unemployment is still far too high, and Washington needs to do everything in its power to get Main Street working again. This bill does just that, and Congress should get to work passing it immediately.”
Andy Stern, former President of the Service Employees International Union and Senior Fellow at Georgetown University’s Public Policy Institute, October 6, 2011
“In this stagnant economy, allowing American businesses to bring back their profits from overseas to invest in jobs and expand their businesses in our backyard is just common sense. Today’s bipartisan action by Senators McCain and Hagan is further evidence of the fact that we must explore all options that will allow our businesses to reinvest right now here at home. I hope that Congress can act quickly so that the President can sign repatriation legislation that will take effect this fall.”
Representative Kevin Brady, House Cosponsor of the Freedom to Invest Act, October 6, 2011
“We all know the economy is sputtering. Let’s do some good now, for American employers and for the U.S. taxpayer, rather than do nothing by maintaining the status quo. Until overall tax code reform is accomplished, we should seize this opportunity to boost our economy by strengthening private sector balance sheets, provide funds for research, help reduce business debt and increase hiring.”
Representative Jim Matheson, House Cosponsor of the Freedom to Invest Act, October 6, 2011
“The Foreign Earnings Reinvestment Act is smart public policy at a time of great challenge for the American economy. It will help bring hundreds of billions of dollars back home, to be invested here in the United States, and it goes further than previous versions of this bill, offering greater incentives for U.S. companies to create jobs here in the U.S. This is a good bill at a tough time, and it deserves serious consideration in Congress this year.”
Simon Rosenberg, President and Founder, NDN and New Policy Institute, October 6, 2011
“Cisco commends the leadership of U.S. Senators Kay Hagan and John McCain for introducing legislation that will allow American businesses to bring home the more than $1 trillion in earnings trapped overseas. If enacted, this bipartisan legislation will help jumpstart our economy and encourage investment in US innovation. Cisco strongly encourages Congress to pass this measure, or the similar bill introduced by Congressmen Kevin Brady and Jim Matheson in the House of Representatives, as soon as possible. The U.S. economy simply cannot afford to wait.”
John Chambers, Chairman and CEO, Cisco, Inc., October 6, 2011
“By allowing a trillion dollars or more to come back from overseas, the Hagan-McCain bill will do more than any other proposal under consideration in Washington to spur growth in the U.S. economy. Senators Hagan and McCain’s work on this important legislation demonstrates what reasonable legislators can accomplish when they set politics aside and do what’s necessary to get our country headed back in the right direction.”
Safra A. Catz, President and CFO, Oracle Corporation, October 6, 2011
