Some of the biggest U.S. companies operating overseas, including Cisco, Google Inc, Apple, Pfizer Inc., and Microsoft Corp. want to come back home and bring their money and jobs with them. The only problem is repatriation comes at a price—they get hit with a 35 percent tax on profits when they return. So now some of these companies are banning together (and spending millions) to pressure Congress to give them a one-time tax holiday. If they get their wish, the tax rate would be reduced to 5.25 percent. The nonpartisan congressional Joint Committee on Taxation estimates that a tax holiday will cost the U.S. Treasury $78.7 billion over the next decade. Is this a fair trade off for job creation and domestic investment? And will enough jobs be created to justify the tax relief?
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