Fair Tax for Repatriation Act

Fair Tax for Repatriation Act - Declares that the federal tax on U.S. corporations earning profits abroad shall be a flat 5%. Makes the Department of the Treasury responsible for administering and enforcing such tax.

[Congressional Bills 113th Congress]
[From the U.S. Government Publishing Office]
[H.R. 5883 Introduced in House (IH)]

113th CONGRESS
  2d Session
                                H. R. 5883

  To lower the Federal tax on the earnings of American companies with 
                          foreign operations.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                           December 11, 2014

 Mr. Stockman introduced the following bill; which was referred to the 
                      Committee on Ways and Means

_______________________________________________________________________

                                 A BILL


 
  To lower the Federal tax on the earnings of American companies with 
                          foreign operations.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Fair Tax for Repatriation Act''.

SEC. 2. LOWERING OF FEDERAL TAX ON EARNINGS OF OVERSEAS AMERICAN 
              COMPANIES.

    (a) Findings.--The Congress finds that American companies with 
foreign operations are accumulating earnings totaling as much as one 
trillion dollars, not repatriated to the United States due to corporate 
income taxes as high as 35 percent. As a result of this penalty, U.S. 
companies invest their earnings in foreign countries with little to no 
consequence. However, if invested internally, these funds could spur 
the development of U.S. jobs, capital assets, research, and more. 
Whereas most developed countries, such as Germany, the United Kingdom, 
and France all have a tax on corporate profits earned internationally 
ranging from 0 percent to 2 percent, the United States has not followed 
this lead. Therefore, the Congress must adopt legislation lowering the 
Federal tax on earnings of American companies with foreign operations 
to 5 percent. Implementation of this change has the ability to raise 
Federal tax revenue by $50 billion, helping to fund the trillion dollar 
stimulus.
    (b) American Jobs Creation Act of 2004 Elimination.--The American 
Jobs Creation Act of 2004 allows American companies with foreign 
operations a one-time tax break on earnings, decreasing the Federal tax 
from 35 percent to 5.25 percent. The ``Fair Tax for Repatriation Act'' 
would lower this tax from 5.25 percent to 5 percent permanently.

SEC. 3. ADMINISTRATION OF THE FAIR TAX FOR REPATRIATION ACT.

    The United States Department of the Treasury will be responsible 
for administrating and enforcing the Federal tax on earnings of 
American companies with foreign operations. The Federal tax for U.S. 
corporations earning profits abroad will be a flat 5 percent.

SEC. 4. ENACTMENT DATE.

    This bill shall go into effect 90 days after passage.
                                 <all>