Business Leaders Love Hagen-McCain Profit Repatriation Bill; Harry Reid, Not So Much

No matter what one may say about Senators Kay Hagan (D-NC) and John McCain (R-Az), this is damned wonderful idea, one which has been kicked around for a long time

(WRAL) Several prominent business leaders from North Carolina are backing a bi-partisan bill in the U.S. Senate that would cut dramatically the tax rate on corporate profits made overseas.

If companies increase the number of employees, the rate would be cut even more under legislation introduced by Sen. Kay Hagan, D-N.C., and John McCain, R-Ariz.

Bringing the profits back to the U.S. is called repatriation.

The rate on repatriated profits would drop to 5.25 percent if a company’s payroll expanded during 2012, according to a summary of the bill released by Hagan’s office. The current top corporate rate is 35 percent.

There is at least a trillion dollars trapped overseas, some say way more. The companies keep these earnings overseas because of the insane tax laws of the US, and this is a way for them to bring it back home, which would be a great shot to the economy.

Brady and House Majority Leader Eric Cantor, a Virginia Republican, issued statements praising the Hagan-McCain bill.

Cantor said the measure was “the latest evidence of bipartisan support for repatriation and I applaud their effort.”

“I hope that Congress can act quickly so that the president can sign repatriation legislation that will take effect this fall,” Brady said in a statement.

Alas, in steps Dingy Harry

Senate Majority Leader Harry Reid said Thursday that the proposal from McCain and Hagan won’t pass the Senate as a stand-alone bill and must be coupled with infrastructure improvement provisions.

“It won’t just be simply repatriation,” the Nevada Democrat said. Corporate tax holiday legislation “will be part of an infrastructure program,” Reid said in an interview. He declined to provide details.

So, Harry Reid (Democrat) is going to hold this excellent piece of bipartisan legislation hostage in order to get more money for painting bridges and digging turtle tunnels. Great.

Crossed at Pirate’s Cove. Follow me on Twitter @WilliamTeach. Please sign the drill now petition.

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