I know this is oversimplified and there are unintended consequences I haven't considered, but:
Seems like a tax holiday, structured with the right incentives (ie X% must be invested in US-based stuff .. Real estate, jobs, etc.) would be a win for everyone. Politicians get an economic stimulus that doesn't directly cost taxpayers money from the budget/treasury, and the companies get to bring back that foreign $$ at a reduced rate.
No, it wouldn't be a win for everyone. What it's really saying is that once every decade or so, large companies that do not immediately need capital during that period, are free to repatriate their earnings at a reduced rate.
Meanwhile, smaller companies and companies that are less profitable (and need those funds to stay in business) are forced to repatriate funds at a higher/normal rate.
And that difference amounts to a subsidy to large established multinational businesses OR a surcharge to their smaller competitors (depending on how you want to look at it).
If the rates are so high that we need a tax holiday, then they are simply too high, and need to be lowered or restructured.
Comments
I know this is oversimplified and there are unintended consequences I haven't considered, but:
Seems like a tax holiday, structured with the right incentives (ie X% must be invested in US-based stuff .. Real estate, jobs, etc.) would be a win for everyone. Politicians get an economic stimulus that doesn't directly cost taxpayers money from the budget/treasury, and the companies get to bring back that foreign $$ at a reduced rate.
No, it wouldn't be a win for everyone. What it's really saying is that once every decade or so, large companies that do not immediately need capital during that period, are free to repatriate their earnings at a reduced rate.
Meanwhile, smaller companies and companies that are less profitable (and need those funds to stay in business) are forced to repatriate funds at a higher/normal rate.
And that difference amounts to a subsidy to large established multinational businesses OR a surcharge to their smaller competitors (depending on how you want to look at it).
If the rates are so high that we need a tax holiday, then they are simply too high, and need to be lowered or restructured.