Earlier today, Congressmen Kevin Brady (R-TX) and Jim Matheson (D-UT), introduced the Freedom to Invest Act of 2011, bipartisan legislation that, if enacted, will provide temporary incentives for American businesses to bring home more than $1 trillion in global earnings to strengthen and invest in the U.S. economy.
The Freedom to Invest Act is intended to allow U.S. companies to repatriate global earnings for either the year the legislation is enacted or the year following enactment, but not both. To ensure that companies use repatriated funds to promote job creation, the bill would penalize companies that reduce their average employment during the two-year period following repatriation of income at the preferential rate.
Adobe is very supportive of this bill as it offers American businesses more flexibility to reinvest some of the revenues they generate overseas back into the U.S. This can deliver clear benefits to our workforce, businesses and our nation’s economy.
Adobe does not believe that we should abandon the exploration of other, much needed, corporate tax reforms. We only suggest that businesses be allowed this opportunity to bring some overseas earnings back home to benefit the US economy, businesses and workers….without adding a single cent to the federal budget deficit.
If we are to retain our position as a global economic leader, we must strengthen the competitiveness of our tax system by reforming our out-dated tax code and bringing it up to 21st century standards.
To learn more about the Freedom to Invest Act of 2011 click here.