Instead of spending tax dollars to stimulate the economy or having the Fed manipulate it, why not let industry do it? That’s the plan with PARA: the Pro-America Repatriation Act. Corporations are holding billions of dollars of foreign earnings overseas and have asked for a zero tax “holiday” to bring it all back into the USA. Now that’s a bit greedy so let’s make a win-win compromise. A company can repatriate as much money as it wants. From one-half to three quarters of it can be designated as PARA funds that will be tax-free. Non-PARA money will be taxed at one-half the current corporate rate. The rules of PARA are simple: the money must be invested in the US economy within the next 2 to 5 years, with the time limit dependent on the amount. PARA money can be used to construct new facilities or update existing ones in the USA (all work must be done by US contractors except vendor-specific equipment work), to buy capital equipment, to hire US workers, to train it’s workers in new techniques, or to run an apprenticeship or co-op program for US citizens. It cannot be used for bonuses, dividends, stock buybacks, debt repayment, or to hire foreign workers.
Any PARA designated money not invested within the agreed time frame will be taxed at twice the corporate rate. There’s no “roll-over” to the next holiday.