Pfizer, Apple, Cisco and Duke Energy are among the tech, energy and pharma companies organizing a lobbying effort to introduce an idea to policymakers of a tax holiday for multinational corporations. The thinking is that a one-year tax rate reduction on foreign earnings of 5%, vs. the typical 35%, would allow Corporate America to reinvest the savings into initiatives at home thus creating jobs and pumping up the U.S. economy. Lobbyists close to the issue admit that it is going to take a lot of work to create legs for this proposal in Congress. However, such a scenario does have precedence. As part of a jobs package in 2004, Congress approved a similar one-year tax holiday. The verdict on whether that program produced the inteneded consequences are mixed.
Read Entire Article by Tory Newmyer of Fortune