A Trillion Dollar Stimulus Plan for the U.S.
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.