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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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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 Center’s Vice President of Public Affairs.

Currently, U.S. firms with operations overseas pay 35 percent in taxes, minus any tax they’ve 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. "It’s 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.


[Posted March 1, 2004]

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