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A Trillion Dollar Stimulus Plan for the U.S.

October 20, 2010 - 5 Comments

Today, in the Wall Street Journal, Cisco Chairman and CEO John Chambers and Oracle President Safra Catz wrote an op-ed on the topic of repatriation of foreign earnings. Entitled, “The Overseas Profits Elephant in the Room: There’s a trillion dollars waiting to be repatriated if tax policy is right,” (subscription required) Chambers and Catz state:

“One trillion dollars is roughly the amount of earnings that American companies have in their foreign operations—and that they could repatriate to the United States. That money, in turn, could be invested in U.S. jobs, capital assets, research and development, and more.

But for U.S companies such repatriation of earnings carries a significant penalty: a federal tax of up to 35%. This means that U.S. companies can, without significant consequence, use their foreign earnings to invest in any country in the world—except here.”

There is quite a discussion on this topic on the Wall Street Journal’s website currently and, of course, we’d love to hear your opinion here as well.

By the way, Chambers and Catz also offer an idea for hiring an additional 2 million new workers as a result of allowing these foreign earnings to be repatriated.

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  1. as long as nobody is harmed, I think it's okay

  2. Repatriating these foreign earnings sounds like a good idea.

  3. i sure could use some of that money. I'm tired of world street execs and CEO getting paid millions while main street is getting killed. trying something different....start giving money to the working class and let it trickle up instead of the other way around...we've been doing it the other way for years and it's not working

  4. I don't know how else to say this so I'll just be completely straightforward. The idea of a trillion dollar stimulus plan is amazing and would be amazing, but when contrasted to our nearly double digit trillion dollar debt, the relief is a bit abated. Still good, but not as much. So that said, I am not at all sympathetic to the plight of the US companies. The companies are not entities that need to breath or eat or sleep, and while CEO's are getting million dollar bonuses there are so many of our own starving to death and shivering in the streets. Alright, I'm getting a little emotional. I don't know what needs to be done, if tax laws need to be re-written or companies pigeonholed for the sake of the greater good but something needs to happen.

  5. I believe many companies want to invest in the U.S., but due to current tax laws it's cheaper for them to invest elsewhere. If those same tax perks applied here, or the current international ones were revoked, I think we would see a significant increase in U.S. spending.