The Daily Caller

The Daily Caller

Supercharging our economy

For decades, Democrats have insisted on taxing profits generated by U.S. companies in foreign countries, because they think that doing so will force businesses to keep their investments in the U.S.

Wrong! A business-friendly environment always works better than force.

President George W. Bush was able to get the repatriated tax rate lowered to 5.25 percent in 2003, and nearly $350 billion came back into our economy. Today, it is conservatively estimated that nearly $1 trillion might come back if we take the tax on repatriated profits to zero.

Yes, zero!

Our economy gains nothing as long as those profits remain abroad. Common sense says we have everything to gain if we let those profits come home without a tax.

Some multi-national businesses might use those profits to expand operations here in the U.S., which would mean more job opportunities for the 15 million unemployed people. Or maybe companies would increase salaries and wages for their employees, or they might pay a dividend to their stockholders.

And remember, many senior citizens depend on their dividend income, if they have any, as a way to supplement their paltry Social Security checks. With the price of gasoline doubling in the last two years, and expected to go even higher along with the cost of everything else, a dividend increase would be some welcome relief to many seniors.

Liberals will argue that there’s no guarantee that those “evil corporations” would do any of these things if they were to get such a windfall in cash. They are right, but it’s their money and their choice. It’s not the government’s money or the government’s choice. I trust businesses and business leaders to make the right choices for their owners and customers, not the government.

We live in a global economy in an age of global information. Global businesses are constantly looking for countries that are business-friendly, tax-friendly and labor-friendly. And contrary to what liberals would have you believe, businesses do not always jump to the country with the cheapest labor. Lower taxes and growth potential are usually at the top of the priority list.

We need to also make the repatriated tax rate permanent, along with all of the other corporate and individual tax rates. We are the only developed nation in the world that has not lowered its top corporate rates in the last 15 years or more.

And when Congress and the president extended the lower tax rates for two years in 2010, they just extended tax uncertainty for two more years, which is bad for business.

Businesses plan their growth based on what they know, and the less they know about what taxes are going to be on domestic and foreign profits, the less they plan to grow. Businesses need and want tax certainty in order to begin to aggressively grow again, which would lead to significant job growth.

Liberals will always fight against anything that moves people’s money from government to the people who earned it. They’ll scream “crimes against humanity, old people, children and the poor” because they do not like totally un-taxing anything. They do not want taxpayers to discover that the right kind of tax cuts will actually help the economy and help put people back to work.

  • D_Bo

    LOVE the fair tax idea. Defund and dismantle the I.R.S..

  • FreedomFan

    Herman Cain for President, Marco Rubio for Vice President.

    We’d sweep the electoral board with great candidates.

  • GOPNYC

    Cain’s plan reminds me of the people who want to give another amnesty to illegal aliens. It encourages the same bad behavior in the future. Just as illegal aliens come here now in the hope of getting yet another amnesty, Cain’s proposal will encourage corporations to invest overseas to return profits to the US at a tax rate lower than that applicable to domestic operations.

    We already HAD one of these reduced rate of tax programs (5%) for repatriated foreign profits a few years ago. It was supposed to be a “one-time” deal. By taking up this call to do yet ANOTHER of these proposals, Cain and the others actually ENCOURAGE companies to build overseas because they know their profits back to the United States at a tax rate lower than that applied to domestic companies. THE REDUCED RATE PROGRAM CANNOT BE REPEATED.

    Cain may have had good intentions, but this proposal shows he doesn’t think things through. I’m very, very, disappointed in him and his reasoning skills.

    • URDUM

      Baloney I say…History backs him on this…Besides it’s not the governments money to decide what to spend it on it’s the corporations and shareholders money…And if those foreign profits where tax free to repatriate… TRILLIONS would come flowing back into THIS ECONOMY NOT Someone Else’s!!!

      • GOPNYC

        History actually proves quite the contrary. Old IRC Section 965 from 2005 was intended as a “one-time” boost to return funds that were supposed to be invested in domestic manufacturing to increase employment in that sector. But employment in that sector actually DECREASED markedly in the three years following the dividend deduction. Moreover, most of the tax break accrued to the benefit of the largest corporations. Smaller and mid-sized companies, the ones that actually generate jobs,mostly did not take up the deduction.

        The amounts Cain would give a break to were already earned; corporations expect to pay tax on them eventually. Offering the break again, a mere six years after the first time, encourages them to continue to invest overseas, knowing that they can, at some point, repatriate their foreign earnings at a tax rate far lower than they would pay on DOMESTIC earnings.

        If Cain wants to “supercharge” the US economy, why not reduce the rate of tax on companies across the board and impose an interest charge for companies that defer repatriating their earnings earned overseas?

        The “Supercharge” proposal Cain has adopted is just K-Street/”Gucci Gulch” lobbyists looking for corporate welfare for their clients. He should know better.

      • GOPNYC
  • MerryJ1

    Herman (“The Hermanator”) Cain is my #1 pick for the next POTUS!

  • http://www.facebook.com/people/Ed-Williams/100002184228588 Ed Williams

    Herman, you’re right, as usual…

    “The government that would take 10% would be exceedingly oppressive.”- Benjamin Franklin

    “Remember in November!”

    POLITICIANS- THE “POLITICALLY CORRECT” ENDANGERED SPECIES!

    Run, Herman, Run!

  • catllers

    Herman Cain for prez:)