Center Supports "Invest in America Act"
In
the release reproduced here, the Center for Individual Freedom
states "This plan would provide a tremendous boost to our economy,"
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C e n t e r F o r I n d i v i d u a l F r e e d o m
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FOR IMMEDIATE
RELEASE
March 1, 2004
Marshall Manson
703.535.5836
Center
Urges Senate to Pass "Invest in America Act"
Plan would provide $400 billion boost to U.S. Economy, stimulate investment,
job creation
ALEXANDRIA, VA
The
Center for Individual Freedom today urged Senators to support the
Invest in America Act, which is now contained in the JOBS Act (S.1637),
sponsored by Senator Charles Grassley.
"This legislation would generate billions of dollars of investment
for research and development, new equipment, and new jobs here in
the United States," said Marshall Manson, the Centers
Vice President of Public Affairs.
Currently,
U.S. firms with operations overseas pay 35 percent in taxes, minus
any tax theyve paid abroad, whenever they bring foreign-earned
income back to the United States. By reinvesting their foreign profits
overseas, rather than bringing them home, companies avoid the tax
penalty. According to economists, hundreds of billions of dollars
in U.S. companies profits are "stranded" abroad
thanks to this penalty. Passing the Invest in America Act would
reduce the tax rate on American companies foreign earnings
to 5.25 percent for one year.
A
PricewaterhouseCoopers study estimated that the Invest in America
Act will provide the incentive for U.S. companies to bring home
$400 billion. The companies could then reinvest this money here
in America - rather than overseas - for expansion, upgrades,
and new jobs. At the same time, the U.S. government stands to collect
over $20 billion in tax revenue on these transfers.
The
Invest in America Act is currently included in S.1637, the JOBS
Act, which amends the Internal Revenue Code to comply with World
Trade Organization rulings on the FSC/ETI benefit and is due for
Senate consideration in the coming weeks.
"This
plan would provide a tremendous boost to our economy," said
Manson. "Its critical that the Senate resist any efforts
to remove it from the FSC / EIT bill and pass it as soon as possible.
The Center strongly encourages the public to call or write their
Senators and ask them to support the Ensign-Boxer Invest in America
Act."
"There
are very few occasions where government action can have a direct
and immediate positive impact on economic growth," concluded
Manson. "This is one of those times. The Senate should seize
this opportunity."
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The
Center for Individual Freedom is a nonpartisan, non-profit constitutional
advocacy group that fights to protect individual rights and stand
up for the free market in the legislative, legal, and educational
areas.
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