By Bernie Becker - 11/30/11 04:28 AM EST
Most other market economies also have in recent years switched to a so-called territorial tax system, which essentially taxes only corporate profits made within a country’s borders.
The 30 groups and others lobbying for a repatriation holiday, like the WIN America Campaign, have said that a repatriation holiday could serve as a steppingstone to a territorial system.
Rep. Dave Camp (R-Mich.), the chairman of the House Ways and Means Committee, has unveiled a draft proposal for a territorial system, as he pushes to comprehensively overhaul the U.S. tax code. Camp’s proposal would use repatriated funds to help pay for the switch to a territorial system.
In their letter, the 30 groups also said that a previous tax holiday, enacted in 2004, was successful. But critics like Sen. Carl Levin (D-Mich.) disagree, declaring that repatriated funds were used more for stock buybacks than job creation.