28 Jan 2003 Project 21 Press Release: Black Group Encourages Tax Relief to Build-Up Economy and Create New Jobs, Stronger Infrastructure
High tax rates make it financially unreasonable for American companies to return their international profits to America. Member of the African-American leadership network Project 21 applauds a new plan that proposes easing the tax burden presently placed on the foreign profits of domestic businesses so that the money can return home to the United States and help invigorate our economy and build-up our national infrastructure.
Currently, profits that are earned abroad by U.S.-based businesses and returned to the United States are taxed at a rate of 35 percent, minus foreign taxes. Because of this substantial tax burden, many companies instead choose to keep those profits outside of the United States, depriving dividends to investors needed money to dwindling pension funds, cutting off money to fund research and development projects and reinvestment in American facilities as well as providing no source of revenue for the government.
A new proposal introduced by U.S. Representatives Phil English (R-PA), David Drier (R-CA) and Kevin Brady (R-TX), called the “Homeland Investment Act of 2003,” would temporarily lower the tax on foreign profits earned by domestic companies from the current rate of 35 percent to 5.25 percent. According to estimates from the congressional Joint Committee on Taxation, this adjustment could add as much as $135 billion to the U.S. economy and raise $4 billion in taxes for the government.
“It’s critical that we leave no stone unturned as we push to get the economy going again. Lowering taxes and promoting a business friendly domestic market is essential in that task,” said Project 21 member Horace Cooper.
Project 21 has been a leading voice in the African-American community since 1992. For more information, contact Chris Burger or David Almasi at (202) 507-6398 or [email protected], or visit Project 21’s web site at http://www.project21.org/P21Index.html.