Repatriation Could Put Millions of Americans Back to Work
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Today, at the Chamber's Quarterly Economic Briefing, former head of the Congressional Budget Office (CBO), Douglas Holtz-Eakin released a study touting the job-creating benefits of a temporary reduction in the taxes on foreign earnings brought back to the United States.
Building upon an analysis by the CBO, Holtz-Eakin estimates bringing profits back to the U.S. would boost GDP by between $175 and $545 billion and put an additional 1.6 million to 4.2 million more Americans back to work.
Our economy's failure to create jobs should lead lawmakers to consider policies which can jump start our economy immediately, such as a repatriation holiday that incentivizes American companies to bring profits back to the U.S. Some of this money will find its way into investment, some will be used to pay more dividends providing consumers the wherewithal to spend, some will be used to shore up balance sheets or buyback stock, and some will be used to create new jobs. All of these are better than leaving the money abroad. In addition, it would actually generate tax revenue which the government would otherwise not get.