U.S. bill would cut taxes on repatriated profits

Reuters News
Posted: Oct 05, 2011 12:53 PM
U.S. bill would cut taxes on repatriated profits

WASHINGTON (Reuters) - Large U.S. multinational corporations would get a tax break on hundreds of billions of dollars in foreign profits under a bipartisan bill to be introduced by two U.S. senators.

Democrat Kay Hagan and Republican John McCain have scheduled a Thursday morning press conference to unveil the Foreign Earnings Reinvestment Act. As previously reported, Hagan has been studying the issue for months.

The introduction of the bill means a step forward for corporate lobbyists pushing aggressively for the tax break. They were dealt a setback on Tuesday with the release of two think tank studies that were highly critical of it.

The Hagan-McCain bill would allow "a temporary reduction in the 35 percent corporate tax rate to incentivize repatriation of up to $1.4 trillion in foreign earnings back to the United States to boost the economy and drive investment here at home," the two senators said in a joint statement.

Further details were not immediately available, such as the proposed temporary tax rate favored by Hagan and McCain.

(Reporting by Kevin Drawbaugh; Editing by Steve Orlofsky)