Blue Dogs endorse “Freedom to Invest Act of 2011”
October 12, 2011
Coalition leadership urges ‘Super Committee’ to take steps now to grow the economy, allow American businesses to repatriate money trapped overseas
Today, members of the fiscally conservative Blue Dog Coalition announced their official endorsement of H.R. 1834, the "Freedom to Invest Act of 2011," bipartisan, common-sense policy that would bring up to $1.4 trillion in private money back to the United States. Following the endorsement, the Blue Dog Coalition leadership sent the following letter to members of the Joint Select Committee on Deficit Reduction.
Dear Representative Hensarling, Senator Murray and Honorable Members of the Joint Select Committee on Deficit Reduction;
The United States has one of the highest corporate tax rates in the entire world. In addition to the high rate, our tax structure is complicated, messy and unfair. That is why we urge the Joint Select Committee on Deficit Reduction to take this opportunity to put us on a path toward comprehensive, long-term tax reform that will help American businesses compete in a global environment and make our economy more competitive.
As you consider tax reform, we urge you to include a temporary change to the tax code that allows businesses to repatriate money trapped overseas as part of reform or as a bridge to comprehensive reform.
The Blue Dog Coalition has endorsed H.R. 1834, the Freedom to Invest Act of 2011. This bipartisan bill, sponsored by Representatives Matheson and Brady, removes a barrier that keeps up to $1.4 trillion in American private-sector money overseas. The Freedom to Invest Act, and similar bipartisan legislation introduced by Senators Hagan and McCain, will entice American companies selling their goods and services abroad to bring earnings back to the United States for investment. The legislation also includes disincentives for American companies who repatriate earnings and reduce their workforce, ensuring that companies directly invest in the U.S. economy.
Without Congressional action this money stays overseas and is invested in foreign economies.
Experts agree that temporarily lowering tax barriers will bring earnings back home, and therefore strengthen our economy. An independent study by former CBO Director, Douglas Holtz-Eakin, shows that repatriation could expand the Gross Domestic Product by four percent and create between one and four million jobs. Another study by Dr. Robert Shapiro, a former Clinton Administration economist shows that repatriation could generate up to $8.7 billion in new revenues over ten years.
We believe that bringing private sector capital back to the U.S. will strengthen recovery efforts and help reduce the federal deficit. Therefore, we urge you to consider this as part of your larger efforts.
Sincerely,
Rep. Heath Shuler, Co-chair, Administration
Rep. John Barrow, Co-chair, Policy
Rep. Mike Ross, Co-chair, Communications
Rep. Dan Boren, Co-chair, Whip
Rep. Dennis Cardoza
Rep. Jim Matheson
Click here for a PDF version of the letter.
The fiscally conservative Democratic Blue Dog Coalition was formed in 1995 with the goal of representing the center of the House of Representatives and appealing to the mainstream values of the American public. The Blue Dogs are dedicated to a core set of beliefs that transcend partisan politics, including a deep commitment to the financial stability and national security of the United States. Click here to go the Blue Dog website.
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Dear Representative Hensarling, Senator Murray and Honorable Members of the Joint Select Committee on Deficit Reduction;
The United States has one of the highest corporate tax rates in the entire world. In addition to the high rate, our tax structure is complicated, messy and unfair. That is why we urge the Joint Select Committee on Deficit Reduction to take this opportunity to put us on a path toward comprehensive, long-term tax reform that will help American businesses compete in a global environment and make our economy more competitive.
As you consider tax reform, we urge you to include a temporary change to the tax code that allows businesses to repatriate money trapped overseas as part of reform or as a bridge to comprehensive reform.
The Blue Dog Coalition has endorsed H.R. 1834, the Freedom to Invest Act of 2011. This bipartisan bill, sponsored by Representatives Matheson and Brady, removes a barrier that keeps up to $1.4 trillion in American private-sector money overseas. The Freedom to Invest Act, and similar bipartisan legislation introduced by Senators Hagan and McCain, will entice American companies selling their goods and services abroad to bring earnings back to the United States for investment. The legislation also includes disincentives for American companies who repatriate earnings and reduce their workforce, ensuring that companies directly invest in the U.S. economy.
Without Congressional action this money stays overseas and is invested in foreign economies.
Experts agree that temporarily lowering tax barriers will bring earnings back home, and therefore strengthen our economy. An independent study by former CBO Director, Douglas Holtz-Eakin, shows that repatriation could expand the Gross Domestic Product by four percent and create between one and four million jobs. Another study by Dr. Robert Shapiro, a former Clinton Administration economist shows that repatriation could generate up to $8.7 billion in new revenues over ten years.
We believe that bringing private sector capital back to the U.S. will strengthen recovery efforts and help reduce the federal deficit. Therefore, we urge you to consider this as part of your larger efforts.
Sincerely,
Rep. Heath Shuler, Co-chair, Administration
Rep. John Barrow, Co-chair, Policy
Rep. Mike Ross, Co-chair, Communications
Rep. Dan Boren, Co-chair, Whip
Rep. Dennis Cardoza
Rep. Jim Matheson
Click here for a PDF version of the letter.
The fiscally conservative Democratic Blue Dog Coalition was formed in 1995 with the goal of representing the center of the House of Representatives and appealing to the mainstream values of the American public. The Blue Dogs are dedicated to a core set of beliefs that transcend partisan politics, including a deep commitment to the financial stability and national security of the United States. Click here to go the Blue Dog website.
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