Obama Needs to Act Big, Do Deal With GOP on Offshore Profits

chris ruddy

If Republicans and Democrats could put aside their differences and think ahead to next year’s Congressional Elections, they would see that now is the time to work together. Obama needs both sides to compromise so that he can use Congressional initiatives to lead the Nation out of this recession.

We are experiencing the consequences for this continued bickering in our faltering economy. A GDP growth above 4% is needed to make a dent in our unemployment numbers. Additionally, our economy relies heavily on retail sales and those numbers are falling, according to our largest commercial retail chains.

There is however one thing that Democrats and Republicans do agree on and that is more consumer cash being pumped into the economy is a good thing. The best way to achieve this is to allow a one year period during which off-shore companies can return their cash to America with only a one time flat tax of 15%. Perhaps as a reward for companies who repatriate all of their money, they can continue to bring in money at a much lower 20% tax for a fixed period of time.

This financial repatriation could be a huge windfall for the US Treasury. Both Republicans and Democrats agree that investing in our roads, bridges, and other projects is worthwhile. This is the way to fund these much needed improvements and American workers will benefit from the employment that these projects will require. This is a win-win proposal that can break the gridlock. President Obama and Congress need to move forward towards growth and compromise.

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