US Companies Urge Tax Haven for Foreign Cash
With $1.5 trillion in cash sitting in foreign bank accounts, Corporate America wants Congress to create another holiday just for them.
After one was created by Congress in 2004, American companies are urging another tax repatriation holiday, where corporate profits sitting in foreign banks would be taxed at a rate much lower than the 35% corporate tax rate. Taxing the cash at just over 5% instead would spur investment, create jobs and inject a dose of adrenaline into a slumping economy, they say.
But this idea isn’t supported by everyone. Small businesses don’t get to store their profits overseas, and even if such a holiday induced an infusion of lower-taxed cash into the US, that money could come out in the form of stock buybacks or dividends with hiring workers just an afterthought.
Some in Washington are floating the idea of regulating how that money can be spent – namely hiring workers and capital investment. How to make the rewards for Corporate America trickle down to middle America can be a tricky task.
But while big companies work the system to pay less in taxes, we work the system for you to resolve your back tax debt. So if the IRS has begun collection action against you, do what the big corporations do: hire a good tax attorney. Maybe one day you might get your own tax holiday.
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