Issue Position: Freedom to Invest Act (Repatriation)

Issue Position

Congressman Matheson introduced bipartisan legislation (HR 1834) that removes a barrier to more than $1 trillion in American private sector money coming back to the U.S. to help grow the economy and reduce the federal deficit. Putting more private sector capital into our economy will strengthen recovery efforts. Under existing federal tax law, U.S.-based multi-national corporations are allowed to defer paying U.S. corporate taxes on profits made overseas, as long as the profits are invested outside the U.S. That creates a strong disincentive for the money to be returned home. Under this bill, companies who would return any foreign profits--above and beyond what they would ordinarily return--would temporarily be taxed at a fraction of the current 35% corporate tax rate. At no cost to taxpayers, the extra money would help companies expand and provide otherwise unrealized revenue to the federal treasury.

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