The Historical and Mathematical Case for Repatriation

ATR ^ | 2011-12-08 | Jacob Feldman

[92nina]

According to analysis by JP Morgan, there are $1.4 trillion of earnings waiting to be returned to the United States if only US tax policy was friendlier to business activity. A 2011 study found that a one-time repatriation tax rate of 5.25% (instead of the difference between the US’ 35% rate and the foreign tax rate already paid) would increase economic growth by $360 billion and create 2.9 million jobs within two years. Industry and academic studies present a favorable view of what repatriation could do for economic growth.

• Shapiro and Mathur find that repatriated funds in 2004 were used to create or retain over 2.14 million jobs, and generated $34.5 billion in new federal revenues. Repatriation increased dividends to American shareholders eightfold when the US temporarily exempted foreign-source dividends.
• Dhammika Dharmapala, Fritz Foley and Kristin Forbes found in their 2004 study that each $1 increase in repatriated earnings was associated with increased payouts to shareholders between $0.60 and $0.92. 24 percent of the dividends repatriated were reportedly used for US capital investment, 23.5 percent for the hiring and training of US employees, 14.7 percent for US research and development, and 12.4 percent for paying down domestic debt.

Repatriation is a first step toward reforming the US’ anti-competitive tax system toward an internationally competitive territorial tax system. History and the numbers tell a story of how repatriation can put Americans back to work now.

Read more: http://www.atr.org/historical-mathematical-case-repatriation-a6635#ixzz1g3jl5V2I

[92nina]

According to analysis by JP Morgan, there is $1.4 trillion of earnings waiting to be returned to the United States.

Take this article and others I found to the fight to the Libs on their own turf; put the Left on the defensive at Digg and at Reddit and in Stumbleupon and Delicious

[sten]

let’s see... fed tax rate is around 35-40%. social security + match is another 15%. state tax ranges from 5-10% except for a few states having 0% income tax. that puts the tax rate around 50-60% depending which state you live in.

corporate tax rate ranges around 35-40%.

meanwhile, the tax rate in hong kong or singapore is 10%. same as the isle of man, but they also have a £100,000 cap.

where would you put your money? where would you want to earn it? the US? hardly. if you knew you were going to build a company that would allow you to bring in $1m personally... the US would allow you, assuming no write offs of note, to hold onto about $500k of that. if it were started in other locations, you’d be able to keep $900k.

which would you rather do?

[Roninf5-1]

Its not about collecting revenue, its about control.

[92nina]

You bring up the numbers and the context for the figures. Not all of the variables are accounted for yet.