U.S. tax break on foreign profits worth $265 billion

06/24/2008 | International Herald Tribune

U.S. corporations repatriated far more in foreign profits than expected under a one-time tax break, reaping a $265 billion benefit, IRS figures showed. Congress approved the tax break in 2004 in a job-creation bill. It allowed companies with offshore subsidiaries to pay a 5.25% tax on earnings entering the U.S., instead of the top corporate rate of 35%. Supporters say about $18 billion poured into the Treasury, five times more than predicted. Critics say there is little evidence that companies used the tax benefit to create U.S. jobs.

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