United States companies have $2.5 trillion in cash sitting in other countries. Apple, for instance, has $158 billion overseas they are afraid to bring back.They are afraid to bring it back to the United States because then it will be taxed.
Think of it: $2.5 trillion being left out of our economy because of fear, just sitting in foreign banks, making those banks money. That’s $2.5 trillion that can be used to hire people, create innovation, fund educational programs, start companies, etc. If the money comes back it can be taxed as high as 50%.
So the answer is simple:
Tax holiday. January 2, 2016, bring all the money back and you only get a 5% tax.
That’s an extra $125 billion to the US government for basically free.
And then there’s something VERY IMPORTANT. It’s called the money-multiplier.
When you have a dollar, you buy a donut. Now the donut man buys a newspaper for the same dollar. The newspaperman buys a coffee.The coffee man buys a hooker.
One dollar is used on average ten times, equals about $10 in economic growth.
$2.5 trillion dollars equals $25 trillion in economy growth. That’s about $12 trillion in taxes, almost wiping out the entire US debt.