Friday, January 30, 2015

The Colorado Senator's Idea Finds New Legs -- And Backers -- Will We Shortly See $20 Billion Or More, Repatriated By Merck?

Well, Apple just disclosed it is closing in on $200 billion (yes, that's a "B"!) of foreign un-repatriated cash. So, it was a near certainty that this idea would surface yet again (especially in the minds of Apple's home-state Senators). Tax holidays, for cash repatriated (at an around 6.5 per cent tax rate -- vs. 35 per cent), and then redeployed -- to shore up infrastructure in the USA -- that's the goal. It's a great idea, but. . .

Actually, the idea was originally floated in early 2014, by a Senator out of Colorado -- Michael F. Bennet (D., CO) -- not Sen. Boxer, of California. Either way, here is the idea -- as re-treaded in 2015:

. . . ."The bipartisan repatriation proposal is a win-win for our economy and our country," Sen. Boxer told The Hill. "First, it will bring back hundreds of billions of dollars in foreign earnings that are sitting offshore, which can be invested here in America to create jobs. Second, the taxes paid on those earnings will be used to extend the Highway Trust Fund, which supports millions of jobs nationwide. I hope this proposal will jumpstart negotiations on addressing the shortfall in the Highway Trust Fund, which is already creating uncertainty that is bad for businesses, bad for workers and bad for the economy. . . ."

Plainly this measure (if enacted) could be of vast benefit to Merck, and all of big pharma and big tech, generally, too. Earlier backgrounders on the topic more generally, are here, and here. Enjoy your weekends -- I'm now. . . "the ghost with the most," baby! MaƱana!

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