Dreier, English, Brady Introduce
Homeland Investment Act

February 14, 2003

WASHINGTON, DC - To encourage more investment in the homeland and stimulate the economy, Congressman David Dreier (R-CA), Chairman of the House Rules Committee, joined Congressman Phil English (R-PA) and Kevin Brady (R-TX) in introducing H.R. 767, The Homeland Investment Act of 2003.

"As we work to get our economy moving again, we need to do all we can to encourage investment in our capital markets," said Dreier. "This legislation is targeted toward the job creators of our economy. Just as consumers need an incentive to invest, so do businesses. This will give the economy a $135 billion shot in the arm at a time when it's really needed."

The Homeland Investment Act would reduce for one year the tax rate on foreign earnings gained by American companies to 5.25 percent. Currently, U.S. firms operating overseas are taxed at the full 35 percent when they invest in the domestic market. This leaves only 65 percent earnings and serves as a disincentive to bring earnings and invest at home.

"American companies doing business abroad are discouraged from bringing earnings home," said English, a member of the House Ways and Means Committee and prime sponsor of this bill. "Today, my colleagues and I propose to lure investment currently stranded overseas back to America, create jobs and give a much-needed boost to the economy by leveling the playing field in tax treatment."

"Our goal is to encourage U.S. businesses with foreign subsidiaries to bring back cash for investment within the United States rather than leaving it invested overseas during this critical period of economic recovery," said Brady, a member of the House Ways and Means Committee.

"Current tax treatment of U.S. companies who have offshore operations leaves them at a competitive disadvantage if they invest in America," English said. "Foreign companies with a much smaller tax burden are able to invest in America at a lesser cost than our own businesses. Our tax code must stop punishing investment in the American economy."