Daily Tax Update - February 11, 2011: Camp Suggests He Is Cautiously Open to Repatriation Holiday

CAMP SUGGESTS HE IS CAUTIOUSLY OPEN TO REPATRIATION HOLIDAY:   Yesterday, House Ways and Means Committee Chairman Dave Camp (R-MI) suggested that he is open to the idea of offering companies a tax incentive to bring overseas earnings back to the United States, but added that any bill would need to be carefully crafted.  Camp said, "I'm hearing from a lot of employers that that is an important issue to them.  There is a lot of funds stranded overseas that could help grow our economy and create jobs here, so I think it will be an important issue that we ought to address.  We want to do it the right way and we want to get some ideas as to the best way to do that and if there are any criteria that might be included to make sure it's effective."

  • Rep. Sander Levin (D-MI), ranking member of the Ways and Means Committee, was less enthusiastic.  Levin said, "I think that the repatriation of some years ago worked very, very poorly.  There's no evidence it created any new jobs, so I think any repatriation proposal has to have an assurance it will create jobs in the United States.  So far there hasn't been such a proposal.  Repatriation is going to be under a very, very significant microscope." 
  • In remarks earlier this week, Treasury Secretary Timothy Geithner said that the Obama administration will not consider any proposals allowing US firms to repatriate foreign earnings at a lesser tax rate unless it is part of a broader tax overhaul effort. 
  • Today, House Minority Leader Steny Hoyer said that while Congress should eliminate the " extraordinary complexity" in the tax code and lower rates, it should not lose revenue.  Hoyer said, "We’ve got to have a corporate tax structure that is, in fact, competitive with the rest of the world," so Congress should " reduce preference items very substantially and bring rates down."  Hoyer also said that "at this point" Republicans " won’t talk about revenues...But they know in the back of their heads, even if they don’t articulate it"  that "revenues have to be a part of this.  In order for us to bring down the deficit, we’ve got to cut spending, but we’ve also got to increase revenue."

TAX BILLS INTRODUCED FEBRUARY 10TH:
1.  [112nd] H.R.11: Build America Bonds to Create Jobs Now Act of 2011
Sponsor: Rep Connolly, Gerald E. "Gerry" [VA-11] (introduced 2/10/2011)  Cosponsors (2)
Committees: House Ways and Means
Latest Major Action: 2/10/2011 Referred to House committee. Status: Referred to the House Committee on Ways and Means.

2.  [112nd] H.R.601: To amend the Internal Revenue Code of 1986 to repeal fossil fuel subsidies for large oil companies.
Sponsor: Rep Blumenauer, Earl [OR-3] (introduced 2/10/2011)  Cosponsors (17)
Committees: House Ways and Means
Latest Major Action: 2/10/2011 Referred to House committee. Status: Referred to the House Committee on Ways and Means.

3.  [112nd] H.R.609: To amend the Internal Revenue Code of 1986 to reduce the corporate income tax rate.
Sponsor: Rep Hanna, Richard L. [NY-24] (introduced 2/10/2011)  Cosponsors (15)
Committees: House Ways and Means
Latest Major Action: 2/10/2011 Referred to House committee. Status: Referred to the House Committee on Ways and Means.

4.  [112nd] H.R.629: To amend the Internal Revenue Code of 1986 to modify the private activity bond rules to except certain uses of intellectual property from the definition of private business use.
Sponsor: Rep Cleaver, Emanuel [MO-5] (introduced 2/10/2011)  Cosponsors (None)
Committees: House Ways and Means
Latest Major Action: 2/10/2011 Referred to House committee. Status: Referred to the House Committee on Ways and Means.

5.  [112nd] H.R.634: To amend the Internal Revenue Code of 1986 to allow individuals to designate that up to 10 percent of their income tax liability be used to reduce the national debt, and to require spending reductions equal to the amounts so designated.
Sponsor: Rep Flake, Jeff [AZ-6] (introduced 2/10/2011)  Cosponsors (6)
Committees: House Ways and Means; House Budget
Latest Major Action: 2/10/2011 Referred to House committee. Status: Referred to the Committee on Ways and Means, and in addition to the Committee on the Budget, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.

6.  [112nd] H.R.636: To repeal PPACA and the health care-related provisions in the Health Care and Education Reconciliation Act of 2010, and to amend the amend the Internal Revenue Code of 1986 to allow individuals a refundable credit against income tax for the purchase of private health insurance, and for other purposes.
Sponsor: Rep Granger, Kay [TX-12] (introduced 2/10/2011) Cosponsors (None)
Committees: House Energy and Commerce; House Ways and Means; House Education and the Workforce; House Administration; House Appropriations; House Natural Resources; House Judiciary; House Rules
Latest Major Action: 2/10/2011 Referred to House committee. Status: Referred to the Committee on Energy and Commerce, and in addition to the Committees on Ways and Means, Education and the Workforce, House Administration, Appropriations, Natural Resources, the Judiciary, and Rules, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.

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