America's independent, non-partisan advocate for overburdened taxpayers.

 

Blog Contributors

Brandon Arnold
Executive Vice President 

Dan Barrett
Research and Outreach Manager 

Melodie Bowler
Government Affairs Intern 

Demian Brady
Director of Research 

Christina DiSomma
Communications Intern 

Jihun Han
Communications Intern 

Timothy Howland
Creative Content Manager 

Samantha Jordan
Communications Intern 

Curtis Kalin
Communications Intern 

Ross Kaminsky
Blog Contributor 

David Keating
Blog Contributor 

Douglas Kellogg
Communications Manager 

Sharon Koss
Government Affairs Intern 

Michael Liguori
Government Affairs Intern 

Richard Lipman
Director of Development 

Joe Michalowski
Government Affairs Intern 

Diana Oprinescu
Communications Intern 

Austin Peters
Communications Intern 

Kristina Rasmussen
Blog Contributor 

Repatriation a Win-Win for Taxpayers, Washington



December 8, 2011

Recent reports indicate that Speaker of the House John Boehner and House Majority Leader Eric Cantor are debating whether to include a repatriation holiday in the legislative package to extend the payroll tax cut and jobless benefits.

Politico reports:

They’ve also been on opposite sides on the issue of repatriation — corporations bringing foreign profits back to the U.S. at lower tax rates. Cantor has been vocal in his support for the process, it’s a favorite of K Street and roughly a quarter of the Republican Conference has signed a letter supporting the idea.

But Boehner is staunchly opposed to tacking it onto the year-end agreement — the optics would be terrible, he thinks, since the Congressional Budget Offices says it adds tens of billions of dollars to the budget. Suddenly, a bill that cuts money would become one that adds to the deficit.

NTU has long been an advocate of fundamental corporate tax reform – lowering the rate and instituting a territorial system. But repatriation – temporarily reducing the tax rate on foreign earnings - is a positive interim step that would bring investment back to our shores and provide a shot in the arm to our ailing economy. Indeed, a recent examination by former CBO Director Douglas Holtz-Eakin on behalf of the Chamber of Commerce found that repatriation could raise GDP by $360 billion over two years and add 2.9 million new jobs to the economy.  

But taxpayers wouldn’t be the only ones to benefit by opening a temporary repatriation window. A August study by former Clinton advisor, Dr. Robert Shapiro, has found that repatriation could provide a significant boost to the U.S. Treasury as well. His research found that contrary to the “terrible optics” that Rep. Boehner mentioned, repatriation would produce revenue gains of $8.7 billion over 10 years, compared to the Joint Committee on Taxation’s estimate of a 10-year cost of $78.7 billion.

It’s a win-win for taxpayers and Washington, for the job-focused and deficit-hawks, and for Republicans and Democrats alike. Now is not the moment for intra-party squabbling. It’s time to provide businesses with some relief from our uncompetitive tax rates by including repatriation in any year-end extenders package that House Republicans send to the Senate.

 

For more information check out some of NTU's recent work on the issue HERE and HERE.


 

Comment on this blog

Nickname
Comment
Enter this word:

User Comments