Utah Republican enters repatriation debate

Lee is offering the measure as an amendment to the China currency bill currently being considered by the Senate.

The Utah Republican’s bill comes in a week where repatriation has been a hot topic of discussion in Washington, with a couple of skeptical studies being released. On the flip side, Sens. Kay Hagan (D-N.C.) and John McCain (R-Ariz.) are expected to introduce a new corporate holiday bill on Thursday.

{mosads}Proponents of a lowering the rate on repatriated funds, at least temporarily, say it would help spark a struggling economy, by luring some of the roughly $1 trillion corporations have parked abroad back into the U.S. Supporters also say a repatriation holiday could act as a bridge to comprehensive or corporate tax reform, a priority for many top policymakers.

But opponents, citing studies of the last holiday, contend that a new corporate holiday would do little to spark job creation in the U.S. – noting, among other things, that some businesses are currently not hiring despite making healthy profits.

Some in the business community have also expressed concern that a repatriation holiday could distract from the broader goal of tax reform, and a possible move to a territorial tax system.

Under that system, multinationals would basically only be taxed on profits made within the U.S. As of now, corporations essentially can defer paying taxes on profits made abroad until those funds are brought to the U.S.