It is time to bing the dollars home.
As much as half of U.S. companies' trillions in cash balances is in the form of overseas earnings (between $500 billion and $700 billion). Much of this money is trapped, due to America's onerous 35 percent corporate tax rate. But this money wants to come home-and we need it to.
Unfortunately, America finds itself on the brink of yet another economic down-turn. At the same time, virtually all levels of our government are struggling simply to maintain current service levels, and state and local government spending cuts have generally become net drags on economic growth. Meaningful reductions in already extremely low interest rates also appear unlikely.
A repatriation holiday in 2004 brought nearly $362 billion back to the U.S. Given the amount of corporate profits aboard today, the newly proposed tax change (bipartisan bill H.R. 1834,
Freedom to Invest Act of 2011) could bring even more money back to this country, potentially restimulating growth and allowing our country to escape the jaws of another recession-and it could be done without adding a penny to the nation's $14.3 trillion debt.
Another recession would be terrible. Financial markets have yet to fully recover from the downturn, leaving many American households with diminished financial wealth and flexibility. The housing market has been mired in its own idiosyncratic recession, with the mantra "its better to be a renter" spreading across the nation as if it were true. Worst of all, the baseline for the next recession would be an unemployment rate already above 9%.
A slowing economy is a reasonably good predictor of recession-and the U.S. economy has slowed profoundly. Some economists calculate that the U.S. economy is presently more than 15% below full output, by far the worst number since the Great Depression. The economy is now at stall speed. There is no better time to bring say $1 trillion home. The Freedom to Invest Act would help to forestall another recession, provide a needed kick-start to our country's debt, and it won't cost our taxpayers a dime.
Does anyone else have any ideas on this posting? They would be greatly appreciated.
Thank You & God Bless America.
Rev. John.