B of A Estimates $400 Billion Infusion With Repatriation Legislation
According to Bank of America analysts, new tax legislation could provide an infusion of more than $400 billion into the American economy. The Invest In The U.S.A. Act, authored by Senator John Ensign, and companion legislation in the House of Representatives, known as the Homeland Investment Act, would drastically lower the tax rate, for a limited time, for American corporations that return foreign held assets to the United States. ‘Bank of America’s estimate that the boost to our economy would be more than $400 billion will add to the momentum this legislation is enjoying,’ Ensign said. Earlier more conservative analyses estimated an economic infusion of $300 billion. The Invest In The U.S.A. Act would provide a one-year window during which American companies could reinvest foreign assets at a tax rate of just 5.25 per cent. Currently, the tax rate for such reinvestments is 35 per cent.