For no good reason, Safra Catz states in the Wall Street Journal, the Obama administration has looked the other way when it comes to obvious monetary and fiscal decisions concerning great U. S. wealth parked overseas.
One trillion dollars is the amount, give or take a few bucks, American companies have in their foreign operations. This is money that could be reinvested in the United States for jobs and capital assets not to mention other obvious needs the U.S. is facing.
There is a problem. For this money to be repatriated back to this country there is a penalty of up to 35% in federal taxes. The sad fact is these companies i.e. Google and our beloved Apple and others can reinvest their foreign earnings in other countries but not the U.S.
Germany, United Kingdom, France, Spain, Italy, Russia, Australia and Canada can repatriate foreign earning to their home countries at a tax rate of 0-2%. If this tax rate was reduced to, let’s say 5%, corporate cash would come flooding back into this country. This amount would be larger than the entire stimulus package and would put Americans back to work. Why are we choosing to choke off foreign earnings that could work in favor of our national interest?