Companies have billions of dollars overseas, and Republicans are in favor of a tax holiday to allow them to bring the money back without a tax liability.
Clinton agrees – so long as the money is reinvested to create new jobs. He notes that a Bush effort to let companies repatriate their billions in 2004 mostly went to pay dividends, buy back stocks, and pay executive salaries. He says three companies that got 20 percent of the total actually cut 30,000 jobs.
Clinton is open to allowing businesses to do bring back money for internal gain again, but not tax free. He would tax money brought home – but not used for job creation – at a low rate. The proceeds would be used to set up an infrastructure bank that would fund grants to states.
“If they just want to increase dividends and compensation, they’ll pay 15 to 20 percent to reap the personal gains, and we can use the money to repair and modernize our infrastructure,” says Clinton.
