Meanwhile, U.S. companies with cash overseas would be able to bring that money back into the country at a 6.5 percent tax rate under a new proposal by Paul and Sen. Barbara Boxer, D-Calif., instead of the current 35 percent rate.
Tax experts have criticized the proposal, saying it would raise federal revenues at first, but would reduce them in the long run and encourage companies to shift more profits abroad and wait for the next tax holiday.
Paul insisted those critics are wrong, citing a study that showed the 2005 tax holiday brought $300 billion of new capital to the U.S. and $30 billion of new tax revenue.
"The whole purpose of doing this is to bring money home," he told CNBC on Monday. "This is to lower [the] tax rate, to bring more money home and to take that new money, some of the tax revenue, and put it into the highway fund. I think this is a win, win, win."
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While he'd like to make the rate permanent, or even make it lower, Paul said this was the best chance to get a lower rate signed into law this year.
"This proposal is for five years and the hope is that we will actually see that it is a net positive over five years and that we will renew it and hopefully this is a step towards making it permanent."
Source: Top Stories - Google News - http://ift.tt/1tXSI1X
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