Obama Wants Big Companies to Bring Home the Bacon

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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