October 7, 2004
Co-chairs of the House New Democrat Coalition today stated they are pleased repatriation provisions similar to their Invest in America legislation will be included in H.R. 4520, slated to be passed later tonight or tomorrow.
“This has been a key New Democrat Coalition priority since this Congress began,” said NDC Co-chair Adam Smith (WA). “We believe it’s critical to provide incentives for companies to bring foreign profits back to invest here in America.”
In March of 2003, Smith (WA) introduced H.R. 1162, the Invest in America Act, which provides tax incentives for foreign subsidiaries to bring profits back to the United States. Twenty-nine House Democrats co-sponsored the measure, including NDC Co-Chairs Jim Davis (FL) and Ron Kind (WI).
The repatriation provisions of H.R. 4520 would temporarily give companies a lower tax rate – from 35 percent to 5.25 percent – for income earned overseas but reinvested in the United States. Independent studies estimate that such a provision would result in $135 billion to $300 billion brought back and reinvested in the United States.
Smith noted, “It has been a long, difficult fight, and we are pleased that we’ve succeeded in getting repatriation sent to the President’s desk.”