Bring the Money Home
About the Problem
Currently, America’s 500 largest companies hold $2 trillion in assets overseas. Some of that money is there for good reason. After all, for a multinational company selling goods and services in a foreign country, it makes plenty of sense to invest in facilities and hire employees that are close to their customers.
But a good portion of this $2 trillion in assets are effectively stranded abroad by peculiarities in the U.S. tax code. The United States has a worldwide tax system, in which US companies pay taxes twice on foreign earnings: once in the country where the income is earned and once when the income is brought back to the U.S. However, these foreign profits aren’t taxed until the U.S. company brings the profits home, which has the effect of encouraging companies to keep that money parked abroad when they might otherwise bring it home.
About the Policy
Give companies the opportunity to bring these assets back home at a one-time lower tax rate, with the requirement that the returning funds be used to invest in the United States.
A one-time lower tax rate combined with a lower annual corporate tax rate and a modernized territorial tax system has the potential to make a dynamic positive change in the American economy by bringing back jobs, investment, and innovation while supplying our country with a much-needed source of revenue.
Polling data derived from three national surveys conducted by Cohen Research Group in February and March 2016. Each survey had a sample size of at least 1,000 registered voters with a margin of error of +/- 3.1%
Tell us what you think
Do you support this idea? Or do you think there's a better solution? We want to hear from you.