Project 21 an organization of African American Conservatives has issued this press release:
Effort to Lower tax Rate on Foreign Profits Would Help Americans at Home
Critical of current tax law that effectively encourages American companies to keep their foreign profits abroad, members of the African-American leadership network Project 21 applaud efforts to lower this specific tax rate and allow these companies to bring their profits home and help grow the American economy and rebuild its infrastructure.
The "Invest in the U.S.A. Act," co-sponsored in the U.S. Senate by Senators John Ensign (R-NV) and Barbara Boxer (D-CA), would lower the tax of foreign profits earned by American companies from the current rate of 35 percent to 5.25 percent. According to a study by the financial services firm J.P Morgan, Chase and Company, as much as $500 million in foreign profits earned by American companies remain abroad due to this high tax burden. The study further predicts the enactment of legislation reducing the tax rate could bring $300 million of that profit back into the U.S. economy and, according to the congressional Joint Committee of Taxation, raise $4 billion in taxes for the government. Such an influx would also create a tremendous boost in the nation's gross domestic product.
"Encouraging American firms with foreign subsidiaries to bring their profits back into the United States is good for not only the U.S. workers, but also the nation's gross domestic product and the U.S. economy as a whole," said Project 21 member Gregory Parker, a government affairs consultant.
Project 21 has been a leading voice of the African-American community since 1992. For more information, contact David Almasi at (202) 371-1400 x106 or [email protected], or visit Project 21 at http://www.project21.org/P21Index.html online.
Republicans and Democrats cooperating to reduce taxes? How can this be? They are not only cooperating but they are admitting that a reduction in taxation will increase tax revenue. What’s next, dogs and cats living together?
Thanks for posting this, Sean. As The National Center sponsors Project 21, I am sheepish to admit this, but we let it go out with a typo. The sentence "the enactment of legislation reducing the tax rate could bring $300 million of that profit back into the U.S. economy" should read "$300 BILLION" -- a much nicer number!
Please accept our apologies for not catching this error in advance of distributing the press release.