February 23, 2005

Crapo Co-Sponsors â??Invest In The USAâ?? Act

Bill could create new jobs, stimulate research and purchasing

Washington, DC - While the Congress debates general tax cuts, Idaho Senator Mike Crapo is one of a growing list of bipartisan supporters pushing for new incentives for American businesses with foreign subsidiaries. S. 596, The Invest In the USA Act, allows for a one-year tax break for businesses that move to the U.S. the earnings from foreign holdings. Those taxes, now as high as 35 percent, would be lowered to 5.25 percent, on a one-year basis.â??It makes sense that our tax system should encourage new investment by bringing as much as $300 billion in offshore profits back to Americans,â?? Crapo said in supporting S. 596. â??We have an opportunity here in a bipartisan fashion to truly let free enterprise help working and taxpaying Americans. These funds, if returned to our shores, can stimulate job growth, research and development, and new purchases of equipment and supplies. It could also boost shareholder dividends and investment in pension plans.â??The bill would amend the Internal Revenue Code of 1986 to encourage the investment of foreign earnings within the United States for productive business investments and job creation. A number of large U.S. corporations, including Hewlett-Packard and Intel Corporation, are supporting the measure, which was originally introduced by Senators John Ensign (R-Nevada), Barbara Boxer (D-California), Gordon Smith (R-Oregon), George Allen (R-Virginia), Mike Enzi (R-Wyoming) and Evan Bayh (D-Indiana). Idaho Congressman C.L. â??Butchâ?? Otter is a supporter in the U.S. House. Crapo said it remains uncertain whether this measure will be included as part of the overall tax package or become a stand-alone measure. He noted the only real losers under the proposal are the overseas banks where much of the foreign profits are often parked. â??The existing law is simply a disincentive to bring those profits home. We will likely see renewed investment in this country if business can keep more of what it earns here at home,â?? Crapo added.# # #