House GOP freshmen push for repatriation

The letter was sent to 4 top House Republicans – Speaker John BoehnerJohn Andrew BoehnerJordan hits campaign trail amid bid for Speaker GOP senator says he 'regularly' considers leaving Republican Party Republicans mull new punishments for dissident lawmakers MORE, Majority Leader Eric CantorEric Ivan CantorFake political signs target Democrat in Virginia Hillicon Valley: GOP leader wants Twitter CEO to testify on bias claims | Sinclair beefs up lobbying during merger fight | Facebook users experience brief outage | South Korea eyes new taxes on tech Sinclair hired GOP lobbyists after FCC cracked down on proposed Tribune merger MORE, Majority Whip Kevin McCarthy and Rep. Dave Camp, the chairman of the Ways and Means Committee – last week.
ADVERTISEMENT

It was circulated widely on Monday, the same day that Rep. Kevin BradyKevin Patrick BradyTrump announces tariffs on 0B in Chinese goods New GOP tax cuts would add .8 trillion to deficit, says report House panel advances key bill in new round of GOP tax cuts MORE (R-Texas) announced that his House tax holiday bill had attracted 100 co-sponsors – mostly Republican, but with more than a dozen Democrats signing on as well.

Repatriation supporters have unleashed a full-press lobbying campaign and have already gained the endorsements of prominent lawmakers like Cantor.

But repatriation holiday bills have yet to even make it past the committee stage. Supporters had also hoped that the supercommittee would take up their cause, but the panel was unable to craft a deficit-reduction package.

Under the most prominent repatriation bills in Congress, U.S. multinationals could get their tax bills on repatriated profits down to as low as 5.25 percent – well below the top corporate rate of 35 percent.

Supporters have said that American companies have more than $1 trillion abroad, and that repatriation is one of the few ways to inject capital into the economy that has support from both parties.

But critics have said that a tax holiday enacted in 2004 did more to spark stock buybacks than job creation, and have pointed to a study conducted by the Joint Committee on Taxation that found that repatration would lose tens of billions of dollars over a decade.

Camp has unveiled a proposal to permanently limit U.S. taxation of offshore corporate profit – a so-called territorial system – and it remains to be seen how that, and the broader push for tax reform, will influence the repatriation debate.

The Obama administration, for instance, has said it will only talk about repatriation within the reform discussion.

In addition to Guinta, Reps. Todd Rokita of Indiana, Richard Hanna of New York, Robert Dold of Illinois and James Lankford of Oklahoma helped organize the freshman GOP letter.