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Thursday, August 4, 2011

Repatriating US Corp Earnings from Abroad A Silver Bullet ?

No, says Joe Weisenthal in a BUSINESS INSIDER article entitled, 'The Very Last "Stimulus" Card For Obama To Play'. Joe explains...

...the truth is that we actually tried this before under the last stimulating President (Bush) with the Homeland Investment Act of 2004. And it flopped.

A group of economists who studied the effects of the HIA concluded that "Repatriations did not lead to an increase in domestic investment, employment or R&D -- even for the firms that lobbied for the tax holiday stating these intentions and for firms that appeared to be financially constrained. Instead, a $1 increase in repatriations was associated with an increase of almost $1 in payouts to shareholders."

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