Repatriation Tax Break Repeat

New House attempt draws fire on cost concerns, lack of jobs creation guarantees.

A fresh legislative effort to allow companies to return profits to the U.S. at a lower tax rate will likely run into the same problems that have dogged repatriation advocates in recent years: its cost and the lack of guarantees that it will create jobs.

Repatriation legislation introduced yesterday by Representative Kevin Brady, a Texas Republican, repeats most of a 2004 law. It would allow U.S.-based companies to repatriate, for one year, income earned overseas at a 5.25 percent rate instead of the 35 percent statutory corporate rate. The money that would flow to the U.S. -- estimated to be as much as $1 trillion -- would spur job creation and investment, Brady maintains.

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