Repatriation for US Multinational Companies

A proposal by the U.S. government for another repatriation holiday (similar to 2004) that enables qualified U.S. companies to take a dividends received deduction (85% in 2004) for eligible dividends received from foreign subsidiaries. Without the proposed holiday, U.S. companies would continue to be discouraged in bringing back to the states revenue earned in a foreign country due to such companies being taxed on their worldwide income. The goal with this deduction is to have it pumped into the U.S. economy (economic stimulus), which would encourage U.S. job growth, among other economic events.

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