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To: Chaka who wrote (21659)	1/18/2005 3:31:27 PM
From: TH	Read Replies (1) \| Respond to of 116555

Chaka, Interesting idea. I do not know how to find this out. Repatriation by US firms is primary driven by tax structure. I remember some bill proposed last year that would allow a tax break for US firms if they used the funds for payment of debt or investment (to create jobs). Did that bill pass? Someone here will know something about this. GT TH

To: Chaka who wrote (21659)	1/18/2005 3:53:58 PM
From: TH	Respond to of 116555

Was this a factor in the latest report? GT TH Senate Passes Smith Repatriation Provision with JOBS Act Tax Relief Would Create Over 650,000 New Jobs Washington, DC - Today, the U.S. Senate passed the Jumpstart Our Business Strength Act (S. 1637) which contains a provision inserted by Senator Gordon Smith (R-OR) which would temporarily lower the corporate tax rate on repatriated profits. "With this relief, U.S. businesses will invest almost $400 billion in our economy," Smith said. "It will create hundreds of thousands of new jobs and get our economy moving again. It is exactly what we need to get people back to work." Currently, U.S. companies are required to pay taxes at a thirty-five percent rate on foreign earnings when these earnings are brought back to America. This creates a massive incentive to keep funds offshore rather than invest surplus earnings at home. Many other countries exclude foreign dividends from domestic taxation under so-called "territorial" tax systems, which encourages domestic investment of surplus foreign earnings. Smith's JOBS Act provision would provide the U.S. economy with a large near-term increase in domestic investment by lowering, for one year, the corporate tax on repatriated profits to 5.25 percent. To be eligible for the discounted rate, businesses must use the repatriated funds for job creating investments such as research and development, employee hiring and training, and other capital investments. gsmith.senate.gov