In our continued crossover theme from our Out West Conference, this item was discovered while reviewing the tons of notes taken and prepping for more detailed articles in the coming Newsletter. Nice find!
As a reminder, a crossover occurs, in our minds, when several experts unknowingly say, predict, or comment on the same event or action. We like the chances of such an event when multiple parties agree, and in this case, we even chime in too.
Repatriation of Foreign money held hostage by US companies
Call it a tax holiday, repatriation or whatever term you may like, our experts agreed totally that allowing US companies to bring money back into the US would be terrific idea. Currently, companies have been strangled by a double tax hit if they bring “Already Taxed once” foreign earnings back into the US.
David Cameron, the famed former Prime Minister/President of Britain “It’s senseless to hold hostage US company money overseas!” He suggested a low tax of 6-8% to allow funds to be brought back into the US and said it would be a nice tail wind.
Derek Burleton, expert Canadian economist “US Corporate tax rates are a big mess and need to be fixed. Allowing funds back into the US from multinational firms is a great idea and would help the economy!”
We could not agree more.
- There will be uses of funds that not all agree are good.
- The spirit of free trade and borders is being hampered in our opinion by double taxing foreign earnings re-entry.
- The World is a MUCH smaller place.
- Free flow of capital will eventually find it’s best use, artificially hampering this can cause inefficiencies.
Have a great “Tax Repatriation” Day!
John A. Kvale CFA, CFP