U.S. Senators , an Arizona Republican, and , a North Carolina Democrat, that would dramatically reduce the taxes companies pay when they bring cash held in foreign countries back to the U.S. The bill temporarily would reduce the tax on repatriated foreign cash to 8.75%% from 35%.
The rate would drop even further, to 5.25%, if companies grow domestic payrolls in 2012 by at least 10%. The bill discourages reductions in payrolls by participants in the program, by requiring them to include in gross income $75,000 per full time position eliminated - basically placing a tax on layoffs for companies that use the repatriation tax break.
The two senators contend that the bill would trigger the flow of billions of dollars back into the American economy.
The idea is one that has widespread support in the Valley, given how much overseas cash tech companies hold. CEO John Chambers .
“This bipartisan bill is a positive step for American businesses and the U.S. economy," VP of government affairs Alice Tornquist said in a statement. "Multinational companies like Qualcomm are looking for reasons to invest at home. We urge Congress to move quickly to enact this legislation and give American companies the incentives they need to grow American jobs and the economy.”
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