Feinstein: Congress and Tech Industry at Odds Over Cash Repatriation

By NTK Staff | 09.01.2017 @1:42pm

The California senator said the tech industry, including Apple, which has more than $250 billion hoarded overseas, wants to pay just 4% to bring it back to the U.S.

Sen. Dianne Feinstein (D-CA) criticized the tech industry during a question-and-answer session with Commonwealth Club this week.

“The tech industry harbors trillions abroad that they don’t bring home,” Feinstein said in San Francisco on Wednesday. “And what many of us are looking for is a methodology to have them bring that money home.”

Feinstein explained the difficulty of making that act, known as repatriation, a reality: the tech industry is seeking a 4 percent repatriation rate to bring that money stateside, but that’s a losing proposition for the government. A 15 percent tax would be “revenue neutral,” Feinstein said.

Perhaps the biggest offender of this is Apple, who as of May 2017 was housing $256.8 billion in overseas accounts. Companies keep money overseas to avoid paying the U.S. corporate tax rate, which tops out at 35 percent.

During the same discussion, Feinstein said potentially lowering the corporate tax rate would be “a fair thing to do” to keep that money from going overseas.

“I haven’t given up yet,” Feinstein said of reaching a repatriation deal. “I’m going to keep trying to get something that can bring the money home, and that that money then can be used to create jobs here.”

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