Article Image
IPFS News Link • TAXES: Federal

Would Another Corporate Repatriation Tax Holiday Create Jobs?

• by MishMoments

Would another tax holiday create jobs?

The New York Times says "Not Necessarily"

President-elect Donald J. Trump has said he would like to create a "tax holiday" so that American companies can bring back profit that was generated overseas at a lower rate. In his view, this influx of cash will create jobs.

But corporate boards and executives may have different ideas.

They are likely to use much of the estimated $2 trillion held overseas to acquire businesses in the United States, to buy back their own stock or to pay down debt, say advisers of America's top corporate executives.

Historical Guide

For clues as to whether another tax holiday would create jobs, all one needs to do is investigate Corporate Tax Holiday History.

In 2004, the United States Congress enacted such a tax holiday for U.S. multinational companies, allowing them to repatriate foreign profits to the United States at a 5.25% tax rate.

Anarchapulco 2023