…his tax dollars.
The White House doesn’t want to let this happen. There are hundreds of billions that could be brought back into the US and provide a healthy tax boost. The White House wants to get their hands on the tax dollars generated. This is a figure that could exceed $100 billion.
Look for a lot of lobbying, and a few political trips to far off lands, while our politicians do some cattle trading over a tax “holiday” for the companies looking to bring the money back without a hit to their cash stash.
Companies push for tax amnesty. U.S. multinational firms, such as GE (GE) and Cisco (CSCO), are pushing for a tax holiday in order to repatriate billions of dollars “trapped” overseas but have been rebuffed by the White House. Research suggests that 30-40% of the nearly $1T in cash held by non-financial S&P 500 companies is being held abroad; for some companies, the trapped cash accounts for more than 75% of their cash balances, but bringing the money back to the U.S. for domestic use would force the firms to pay tax on the money, usually of 25-35%. Corporations say bringing the money back would be good for the U.S. economy, but the White House feels it would raise expectations of future tax holidays, that the repatriated money might be paid to shareholders instead of used for job creation and that a lack of investment is not the most pressing economic problem.