By Derek Hunter
President
Obama’s 2016 budget includes a one-time 14% tax on approximately $2 trillion of
so-called unrepatriated (or “trapped”) foreign earnings of large multinational
corporations. The proposal also includes a 19% tax on future foreign earnings,
with a sizable credit for foreign taxes paid, which will allow those earnings
to then be brought back to the United States with no additional tax due. The
importance of this proposal really cannot be overstated: TARP and the Obama
Stimulus of 2009 combined amounted to
$1.2 trillion, less than eligible U.S. corporate unrepatriated earnings under
this plan.
Check out the New York Times take on the Obama proposal.
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