To avoid the highest corporate income tax in the world, many American companies set up shop overseas, and don’t bring profits home to avoid that high tax. Thus we have the issue of how to tax over seas profits of American companies — should we allow companies to bring overseas profits home (“repatriation”) without the 35% tax?
What would you do?
You run a gigantic corporation that has manufacturing overseas, with $500 million in profits in overseas banks. You would like to set up a new facility in North Carolina, but you would lose 35% in taxes if you invested that money in the US.
The left knows that companies, by taking their businesses overseas, avoided U.S. taxes (and regulations) and they damn well are not going to let the companies get away with it. By opposing tax- free repatriation, they create a tax environment that keeps corporate profits overseas, and makes sure they will not be used to invest and create jobs here. They so want their tax pound of flesh, that they forego an opportunity to promote economic growth.
A reduced rate if repatriated money were to be invested in a job-creating facility,.