S.1671, Foreign Earnings Reinvestment Act
The bipartisan Foreign Earnings Reinvestment Act encourages American companies to bring overseas earnings back to the United States and creates strong incentives for those firms to invest earnings in U.S. employees.
The legislation would reduce the 35 percent corporate rate to an 8.75 percent effective rate on foreign earnings brought back to the United States. It would also allow firms to obtain up to a 5.25 percent effective repatriation rate if they expand their U.S. payroll during 2012.
Click here for more information on the Foreign Earnings Reinvestment Act
Click here for WIN’s press release on the Foreign Earnings Reinvestment Act
H.R. 1834, The Freedom to Invest Act of 2011
Known as “repatriation,” the Freedom to Invest Act of 2011 is a bipartisan bill introduced by Rep. Kevin Brady (R-TX), Rep. Jim Matheson (D-UT), Rep. Jim Cooper (D-TN), Rep. Devin Nunes (R-CA), Rep. Jared Polis (D-CO), and Rep. Bob Dold (R-IL.)
It would provide a reduced dividends deduction rate of 85%, yielding a maximum tax rate to 5.25% for one of two years. The preferential rate would only apply to earnings above what a company on average brings back. The legislation also includes a disincentive designed to discourage American companies from repatriating earnings at the lower rate and reducing their workforce.
Click here for more information on the Freedom to Invest Act
Click here for WIN’s press release on the Freedom to Invest Act
