Michelle Bachmann's Repatriation Initiative

According to Michelle Bachmann, more than 1.2 trillion United States dollars could be brought back to America in days as an immediate “stimulus” if the government would implement an overseas corporate profit repatriation tax holiday, and then permanently keep it here in the U.S. The New America Foundation study notes firms that will spend their repatriated cash face two choices, either return it to shareholders or spend in internally. However, according to Reuters, when companies return money to shareholders, the benefactors will likely be wealthy Americans who will benefit and start spending. Despite the repatriation benefitting the wealthy, it will, nonetheless, help stimulate aggregate demand, but in many ways Bachmann’s approach seems shortsighted. At a time when the federal government needs to increase revenue and American businesses operating overseas impede the survival and growth of American jobs, Bachmann proposes that when she enters the White House she would encourage long-term repatriation tax reductions. While well intended Bachmann would therein encourage multinational corporations to move operations outside of the United States. Cutting the corporate tax rate may encourage businesses to bring operations back to America, but cutting repatriation taxes ultimately only encourage foreign investment. Though Bachmann’s plan holds some benefits for the wealthy, ultimately it discourages job growth and therefore the costs outweigh the minimal benefits.