TREASURY SPEAKS OUT AGAINST REPATRIATION TAX HOLIDAY
On March 24, the Treasury released a blog post coming out against a proposed tax holiday on overseas profits. A group of U.S.-based corporations, led by the Chamber of Commerce, have been pushing heavily for the repatriation tax holiday which would allow companies to bring profits back to the U.S. from overseas. Michael Mundaca, Assistant Treasury Secretary for Tax Policy said that the holiday could cost taxpayers billions of dollars, and asserted that instead the focus should remain on comprehensive tax reform. Mundaca cited the results of the tax holiday of 2004, saying: “there is no evidence that it increased U.S. investment or jobs, and it cost taxpayers billions…the nonpartisan Congressional Research Service reports that most of the largest beneficiaries of the holiday actually cut jobs in 2005 and 2006.”
In response to Mundaca’s statement, Chamber of Commerce COO and Executive Vice President David Chavern stated that he “presented a false choice,” because “the real choice is not a tax holiday versus reform – it’s do we want money returned to the U.S. economy or do we want it invested in competing economies overseas?” Despite the Chamber’s response, it seems that congressional GOP leaders on the issue were warier of a tax holiday, as both House Ways and Means Committee Chairman Rep. Dave Camp (R-MI)) and the ranking member of the Senate Finance Committee (Sen. Orrin Hatch (R-UT)) stated via their staffers that they prefer to view the repatriation issue through a more comprehensive approach to rewriting the U.S. tax code.
Other Topics From Full Report Include:
- EU INVESTORS ECHO U.S. CONCERNS OVER FINANCIAL REGULATION
- GENSLER ASKS EU TO WORK WITH U.S. ON SWAPS REGULATION
- EU POSSIBLY ALLOWING COCO BONDS TO MEET CAPITAL REQUIREMENTS FOR SIFIS
- ANTITRUST CONCERNS ARISE IN NYSE EURONEXT/DEUTCHE BOURSE MERGER
- U.S. MOVES TOWARDS ADOPTING COVERED BONDS
- DURBIN PREPARING FOR FILIBUSTER OF INTERCHANGE FEE DELAY
- FASB TO CONSIDER RULES ON RELATIONSHIP LENDING BY U.S. BANKS
- TREASURY TO WIND DOWN ITS FANNIE- AND FREDDIE-BACKED MBS
- TREASURY MAY CONSIDER EXEMPTIONS FOR SOME FOREIGN EXCHANGE SWAPS
- TREASURY SPEAKS OUT AGAINST REPATRIATION TAX HOLIDAY
- SEC UNLIKELY TO ADDRESS FIDUCIARY STANDARDS BEFORE THIS SUMMER
- EXPERT PANEL PROPOSES “TRADE-AT” RULE TO PREVENT FUTURE FLASH CRASHES
- SEC TO IMPLEMENT WHISTLEBLOWER RULES IN APRIL
- HEDGE FUNDS AND PRIVATE EQUITY FIRMS EXPRESS CONCERN WITH SEC REGISTRATION TIMELINE AND DISCLOSURE REGULATIONS
- ISSA CHALLENGES SEC ON OVERREGULATION
- FDIC VICE CHAIR LIKELY SUCCESSOR TO SHEILA BAIR
- FEDERAL REGULATORS TO ADDRESS RISK RETENTION
- CFTC TO HOLD ITS 13TH DODD-FRANK RULEMAKING MEETING
- CONGRESSIONAL “INSIDER TRADING” BILL INTRODUCED
- UPCOMING HEARINGS
