A bipartisan bill introduced in the U.S. Senate that would create a corporate tax holiday has given backers hope the idea is gaining momentum.
Supporters say providing a window allowing U.S. multinational corporations to bring offshore funds back to the United states at a low rate not only would infuse the U.S economy with capital but also is one of the few bills on Capitol Hill that enjoys bipartisan support, The Hill reported Friday.
"In this day and age of non-stop partisanship, we have brought together a lot of folks who rarely agree. That really speaks to the power of the issue and the growing momentum behind our campaign," an adviser for the pro-repatriation group WIN America Campaign told The Hill.
Conversely, some tax observers note some in the business sector are concerned a tax holiday would draw attention from the larger goal of tax reform.
Among other things, the bill would give corporations a chance to pay a 5.25 rate on repatriated funds, representing an 85 percent reduction from the current top corporate rate of 35 percent, The Hill said. It also includes penalties for companies that lay off employees while taking advantage of the holiday.
On Thursday, Sen. John McCain, R-Ariz., who is sponsoring the Senate version with Sen. Kay Hagan, D-N.C., said supporters would try to attach the measure to President Obama's jobs package.
The McCain-Hagan bill is one of several corporate tax holiday bills circulating in both chambers.